Macy’s (M) earnings Q3 2025
Macy’s It beat Wall Street’s sales expectations for a third straight quarter on Wednesday, marking the strongest growth in more than three years as the company’s recovery strategy showed signs of momentum.
The department store operator raised its full-year sales and earnings outlook after a better-than-expected fiscal third quarter. The retailer now expects adjusted earnings per share of $2 to $2.20, up from its previous expectation of $1.70 to $2.05, and net sales of $21.48 billion to $21.63 billion, compared to its previous outlook of $21.15 billion and $21.45 billion.
Macy’s said it expects a sales increase of about 0.5% compared to the previous year. This compares with expectations for a decline of between 0.5% and 1.5% compared to the same period in the previous year. The industry measurement considers one-time dynamics such as store openings and closings, and includes products Macy’s owns, products from brands that pay for space in its stores, and third-party online marketplaces.
This was noted as Macy’s raised its full-year sales and earnings outlook for the second quarter in a row. The company had lowered its full-year earnings outlook in May, citing higher tariffs, more promotions and “some moderation” in discretionary spending.
Even so, projected annual sales represent a decrease from the previous year’s net sales of $22.29 billion. Macy’s said about $700 million of the decline in annual net sales was due to the 64 stores it closed at the end of its last fiscal year, which ended Feb. 1, and the beginning of this fiscal year.
And Macy’s said in its press release that its outlook predicts that two challenging dynamics — consumers’ selective spending and higher tariffs — will continue into the holiday quarter.
In an interview with CNBC, CEO Tony Spring said the company is approaching the fourth quarter from a “cautious” perspective because it faces tough year-over-year comparisons and is unsure how “eager customers” who like to shop at its stores but are more financially pressured will be able to spend during the season.
“We’re pleased with the fourth quarter to date, but we have a big holiday ahead of us,” he said.
Macy’s store model is an advantage during gift-giving season because it offers a wide variety of products and prices ranging from discounted to luxury, he said.
Here’s how the department store operator performed in its fiscal third quarter compared to Wall Street expectations, according to a survey of LSEG analysts:
- earnings per share: Adjusted 9 cents, versus an expected loss of 14 cents.
- Revenues: $4.71 billion, expected $4.62 billion
Macy’s is trying to drive better and more consistent sales, especially for its eponymous brand. Macy’s stores account for the majority of the New York City-based legacy retailer’s business, but their performance lags that of the company’s high-end department store Bloomingdale’s and beauty chain Bluemercury. To reverse this trend, the retailer has increased investments in staffing, sleeker products and eye-catching displays at Macy’s stores. We first implemented this strategy in 50 locations called the “Top 50” and later expanded this approach to a total of 125 Macy’s locations. That’s more than a third of the 350 namesake stores that Macy’s plans to keep open.
With the added investment, underperforming Macy’s locations were also closed. In early 2024, it announced it would permanently close approximately 150 namesake stores by early 2027, while planning to add locations for Bloomingdale’s and Bluemercury.
The company has not yet said how many more stores it might close this fiscal year.
Macy’s net income for the three months ended Nov. 1 fell to $11 million, or 4 cents per share, from $28 million, or 10 cents per share, in the same period a year earlier. Adjusting for some one-time items, including gains from the sale of real estate, the company reported earnings of 9 cents per share.
Revenue was down from $4.74 billion in the same quarter a year ago.
In the fiscal third quarter, comparable sales across the company, including owned and licensed products and third-party marketplace, increased 3.2%. When the company excludes stores that will not be part of its business going forward, this growth was 3.4%.
Bloomingdale’s had the strongest performance among the company’s brands; comparable sales increased 9% year over year on an owned-plus-licensed basis, including the third-party market. And Bluemercury’s comparable sales rose 1.1%.
As of Tuesday’s close, Macy’s shares are up nearly 34% so far this year. This outpaced the S&P 500’s gain of 16% in the same period. Macy’s shares closed at $22.71 on Tuesday, bringing the company’s market value to approximately $6.10 billion.
