MacyaEUR(TM)s, Inc. reported fourth-quarter and fiscal year 2025 financial results and provided guidance for fiscal 2026.

Macy's, Inc. (NYSE: M) today reported financial results for the fourth quarter and fiscal year 2025 and provided fiscal year 2026 guidance.

Fourth Quarter 2025 Highlights

Macy's, Inc. net sales of $7.6 billion exceeded guidance.

Macy's, Inc. comparable sales1 grew 1.8%, exceeding the company's guidance.

Macy's, Inc. achieved go-forward comparable sales growth of 2.0%.

Macy's go-forward comparable sales increased 0.6%, inclusive of Reimagine 125 store comparable sales growth of 0.9%.

Bloomingdale's comparable sales rose 9.9%.

Bluemercury comparable sales grew 1.3%.

Macy's, Inc. achieved GAAP diluted earnings per share ("EPS") of $1.84; Adjusted diluted EPS of $1.67 exceeded the company's guidance.

Fiscal Year 2025 Highlights

Macy's, Inc. returned to positive comparable sales growth, up 1.5%.

Macy's go-forward comparable sales increased 0.6%, inclusive of Reimagine 125 store comparable sales growth of 1.0%.

Macy's, Inc. delivered GAAP diluted EPS and Adjusted diluted EPS of $2.32, exceeding the company's most recent guidance range of $2.00 to $2.20 despite tariff headwinds.

Macy's, Inc. ended the year with $1.2 billion of cash and cash equivalents and generated operating cash ?ow of $1.4 billion and free cash flow of $0.8 billion.

Macy's, Inc. returned $448 million to shareholders, including $197 million of cash dividends and $251 million in share repurchases.

"As we wrap up year two of the Bold New Chapter, I'm pleased with the growth and progress we're making against our strategic priorities," said Tony Spring, chairman and chief executive officer of Macy's, Inc. "At Macy's, we are offering more relevant brands, stronger storytelling and investing in our colleagues so we can better serve the customer. Bloomingdale's exceptional performance underscores its ability to elevate the customer experience and capture demand across premium contemporary to luxury businesses. Looking to 2026 and beyond, we are ready to build on our progress."

Fourth Quarter 2025 Results1 (comparisons are to the fourth quarter 2024)

Macy's, Inc. net sales, inclusive of store closures, decreased 1.7%2 to $7.6 billion, with comparable sales up 1.8%. Comparable sales reflect positive comparable sales at each of the company's nameplates.

Macy's, Inc. go-forward business3 comparable sales were up 2.0%. By nameplate:

Macy's net sales, inclusive of store closures, were down 3.2%2. Comparable sales were up 0.4%. Macy's go-forward business2 comparable sales were up 0.6%.

Reimagine 125 locations comparable sales were up 0.9%.

Bloomingdale's net sales were up 8.5%. Comparable sales were up 9.9%.

Bluemercury net sales were up 2.5% and comparable sales were up 1.3%.

Other revenue of $277 million increased $38 million, or 15.9%. Within Other revenue:

Credit card revenues, net increased $30 million, or 17.1%, to $205 million, primarily due to the company's healthy credit portfolio.

Macy's Media Network revenue, net rose $8 million, or 12.5%, to $72 million.

Gross margin rate3 of 35.2% decreased 50 basis points. The decline was primarily attributable to an approximately 60 basis point tariff impact, which was in-line with the company's expectations.

Selling, general and administrative ("SG&A") expense of $2.4 billion decreased $23 million, reflecting the net benefit from closed Macy's locations, continued cost containment efforts, and end-to-end savings initiatives, partially offset by ongoing investments in the go-forward business, including Reimagine 125 locations, Bloomingdale's and digital across nameplates. As a percent of total revenue, SG&A expense increased 10 basis points to 29.8%.

Asset sale gains were $3 million compared to $41 million reflecting fewer transactions year-over-year. The company remains committed to closing underproductive stores taking a disciplined approach to transactions. Its balance sheet strength provides flexibility to generate the best cash value for the company's assets.

GAAP net income was $507 million4, or 6.4% of total revenue, and Adjusted net income was $458 million, or 5.8% of total revenue. In the fourth quarter of 2024, net income was $342 million, or 4.3% of total revenue, and Adjusted net income was $507 million, or 6.3% of total revenue.

GAAP and Adjusted diluted EPS were $1.844 and $1.67, respectively. In the fourth quarter of 2024, GAAP and Adjusted diluted EPS were $1.21 and $1.80, respectively.

Adjusted earnings before interest, taxes, and depreciation and amortization ("EBITDA") was $840 million, or 10.6% of total revenue, and Core Adjusted EBITDA5 was $837 million, or 10.6% of total revenue. In the fourth quarter of 2024, Adjusted EBITDA was $903 million, or 11.3% of total revenue, and Core Adjusted EBITDA was $862 million, or 10.8% of total revenue.

Fiscal Year 2025 Results1 (comparisons are to fiscal year 2024)

Macy's, Inc. net sales, inclusive of store closures, decreased 2.4%2 to $21.8 billion, with comparable sales up 1.5%. Comparable sales growth at Macy's Reimagine 125 locations, Bloomingdale's, Bluemercury and digital channels were offset primarily by Macy's non-go-forward locations.

Macy's, Inc. go-forward3 business comparable sales were up 1.7%. By nameplate:

Macy's net sales, inclusive of store closures, were down 3.8%2. Comparable sales were up 0.4%. Macy's go-forward business comparable sales were up 0.6%.

Reimagine 125 locations comparable sales were up 1.0%.

Bloomingdale's net sales were up 6.3%, with comparable sales up 7.4%.

Bluemercury net sales were up 2.6% and comparable sales were up 1.6%.

Other revenue of $857 million increased $144 million, or 20.2%. Within Other revenue:

Credit card net revenues increased $132 million, or 24.6%, to $669 million, reflecting the health of the portfolio.

Macy's Media Network net revenue rose $12 million, or 6.8%, to $188 million.

Gross margin rate of 38.0% declined 40 basis points. The decline was attributable to a 40 basis point tariff impact and proactive markdowns on remaining early Spring product in the second quarter to maintain healthy inventories and product bought under prior tariff rates.

SG&A expense of $8.2 billion decreased $90 million, reflecting the net benefit from the 64 closed Macy's locations, continued cost containment efforts and end-to-end savings initiatives, partially offset by ongoing investments in the go-forward business, including Reimagine 125 locations, Bloomingdale's and digital across nameplates. As a percent of total revenue, SG&A expense increased 20 basis points to 36.4%.

Asset sale gains of $48 million were $96 million lower. As part of its Bold New Chapter strategy, in fiscal year 2025, the company monetized non-go-forward assets, which contributed to fiscal year asset sale gains.

GAAP net income was $642 million4, or 2.8% of total revenue, and Adjusted net income was $643 million, or 2.8% of total revenue. In fiscal year 2024, net income was $582 million, or 2.5% of total revenue, and Adjusted net income was $745 million, or 3.2% of total revenue.

GAAP diluted EPS was $2.324 and Adjusted diluted EPS was $2.32, compared to GAAP diluted EPS of $2.07 and Adjusted diluted EPS of $2.64 in fiscal year 2024.

Adjusted EBITDA was $1.8 billion, or 8.1% of total revenue, and Core Adjusted EBITDA5 was $1.8 billion or 7.9% of total revenue. In fiscal year 2024, Adjusted EBITDA was $2.0 billion, or 8.6% of total revenue, and Core Adjusted EBITDA was $1.8 billion, or 8.0% of total revenue

Balance Sheet and Liquidity

Merchandise inventories decreased 1.3% year-over-year. The company believes the composition and level of inventories are well-positioned heading into fiscal year 2026.

The company ended fiscal year 2025 with cash and cash equivalents of $1.2 billion and had $2.0 billion of available borrowing capacity under its asset-based credit facility.

As of the end of fiscal year 2025, total debt was $2.4 billion. The company has no material long-term debt maturities until 2030.

Shareholder Returns

Through its quarterly dividend, the company returned $48 million in cash to shareholders in the fourth quarter of 2025, and $197 million for the 2025 fiscal year. Additionally, on February 27, 2026, Macy's, Inc.'s board of directors declared a regular quarterly dividend of 19.15 cents per share on Macy's, Inc.'s common stock, an increase of 5%, payable on April 1, 2026, to shareholders of record at the close of business on March 13, 2026.

During the fourth quarter of 2025, the company repurchased 2.3 million of its shares for $50 million, bringing total fiscal year 2025 repurchases to 17.7 million shares for $251 million. The company had approximately $1.1 billion remaining under its $2.0 billion share repurchase authorization as of the end of fiscal year 2025.

1: Comparable sales refers to owned-plus-licensed-plus-marketplace sales.

2: Reflects the impact of fiscal 2024 store closures, primarily Macy's nameplate locations, which contributed approximately $200 million in the fourth quarter of 2024 and approximately $700 million in full year 2024.

3: Inclusive of go-forward locations and digital, unless otherwise specified. For Macy's, Inc. this reflects go-forward locations and digital across all three nameplates.

4: Inclusive of $328 million of pre-tax income related to the settlement of agreements to resolve credit card interchange fee litigation matters, net of legal fees.

5: Defined as Adjusted EBITDA excluding asset sale gains.

2026 Guidance

The company is providing its annual fiscal year 2026 guidance. It recognizes that there are macroeconomic and geopolitical factors that could influence discretionary spend. As such, the company is taking a prudent approach to guidance, giving flexibility within its business model to respond to changes in the competitive landscape and external environment. Guidance assumes the first half of the year will have a larger tariff impact than the second half, with the first quarter having the most meaningful impact. Additionally, guidance reflects the investments to be made in the company's Reimagine 200 locations and luxury nameplates to support long-term top-line growth, and fewer non-go-forward store closures in fiscal 2025 than fiscal 2024.

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