Macy's Inc

Latest Results (15.05.2026):

Macy’s, Inc. reported results for the fourth quarter of 2025 (quarter ended January 31, 2026). Net sales were $7.6 billion with comparable sales up 1.8% (go‑forward comps +2.0%). GAAP diluted EPS was $1.84 and Adjusted diluted EPS was $1.67. The quarter and full fiscal 2025 performance reflected strength at Bloomingdale’s and growth in credit-card and media revenue, partially offset by tariff headwinds that pressured gross margins.

Top-line and comparable sales

Q4 net sales: $7.639B (-1.7% year-over-year, inclusive of store closures). Comparable sales rose 1.8%, with go‑forward comparable sales up 2.0%. For the full fiscal year 2025, net sales were $21.764B (-2.4%) and comparable sales were +1.5%.

Earnings and one-time item

Q4 GAAP net income was $507M (GAAP diluted EPS $1.84); Adjusted net income was $458M (Adjusted diluted EPS $1.67). GAAP results include a $328M pre‑tax interchange fee settlement that materially benefited reported net income in the quarter. For fiscal 2025, GAAP and Adjusted diluted EPS were $2.32.

Nameplate performance

Bloomingdale’s led performance: Q4 comparable sales +9.9% (net sales +8.5%). Macy’s nameplate comps were modestly positive (Q4 comps +0.4; net sales -3.2% driven by non‑go‑forward closures) and Reimagine 125 locations comps +0.9%. Bluemercury comps +1.3%.

Margins and operating costs

Q4 gross margin rate was 35.2%, down 50 basis points versus prior year; management attributed roughly a 60 bps tariff impact in the quarter. SG&A was $2.4B (29.8% of revenue), essentially flat in dollars as the company offsets investments with cost containment and benefits from closed locations.

Cash, liquidity and cash generation

Fiscal 2025 year‑end cash and equivalents were $1.2B, operating cash flow was $1.43B and free cash flow $0.80B. Total debt was $2.4B with no material long‑term maturities until 2030 and $2.0B of borrowing capacity under the ABL facility.

Shareholder returns and buybacks

Macy’s returned $448M to shareholders in fiscal 2025 (dividends $197M, repurchases $251M). In Q4 the company repurchased 2.3M shares for $50M and declared a quarterly dividend increase to $0.1915 per share (payable April 1, 2026). Approximately $1.1B remained available under the current repurchase authorization.

Outlook for fiscal 2026

Guidance: net sales $21.4B–$21.65B, comparable sales change (‑0.5%) to +0.5%, Adjusted diluted EPS $1.90–$2.10, and Adjusted EBITDA ~7.7%–7.9% of revenue. Management flagged tariff timing and geopolitical risks, and plans investments in Reimagine locations and luxury nameplates while keeping a prudent stance on the first half of the year.