Macy’s Inc (NYSE:M) stock fell Wednesday even as the retailer delivered stronger sales, profit and comparable growth.
Stronger results at Bloomingdale’s and Bluemercury and a higher full-year outlook underscored management’s confidence heading into the holiday season.
The firm reported quarterly sales of $4.713 billion (down 0.6% year over year), beating the Street view of $4.621 billion.
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Key Metrics
Macy’s reported a 2.5% increase in comparable sales on an owned basis. Comparable sales rose 3.2% on an owned-plus-licensed-plus-marketplace basis.
Macy’s Reimagine 125 locations delivered comparable sales growth of 2.3% on an owned basis and 2.7% on an owned-plus-licensed basis, again outperforming the broader Macy’s banner.
“As we enter the holiday season, we are well-positioned with compelling new merchandise and an omni-channel customer experience that delivers both inspiration and value,” said Tony Spring, chairman and chief executive officer of Macy’s.
Bloomingdale’s posted its strongest performance in over three years, with comparable sales up 8.8% on an owned basis and 9.0% on an owned-plus-licensed-plus-marketplace basis, while Bluemercury added another quarter of growth with a 1.1% comparable sales increase.
The company reported third-quarter adjusted earnings per share of 9 cents.
The company also returned about $99 million to shareholders through $49 million in dividends and $50 million in share repurchases.
Gross margin rate of 39.4% declined 20 basis points. The decline was primarily attributable to a 50-basis-point tariff impact.
Adjusted EBITDA totaled $285 million, representing 5.8% of total revenue. Core adjusted EBITDA was $273 million, or 5.6% of total revenue.
The company ended the third quarter of 2025 with $447 million in cash and cash equivalents. It also had $2 billion of available borrowing capacity under its asset-based credit facility.
Total debt stood at $2.4 billion at the end of the quarter. The company has no material long-term debt maturities until 2030.
On Oct. 24, Macy’s board declared a regular quarterly dividend of 18.24 cents per share. The dividend will be paid on Jan. 2, 2026, to shareholders of record as of Dec. 15, 2025.
Outlook
Macy’s raised its fiscal 2025 adjusted earnings outlook to $2.00–$2.20 per share, up from $1.70–$2.05 and above the $1.96 consensus estimate.
The company also lifted its fiscal 2025 sales forecast to $21.475 billion–$21.625 billion from $21.150 billion–$21.450 billion, compared with the $21.501 billion analyst estimate.
Cautious Tone Ahead Of Holiday Season
Macy’s struck a cautious tone ahead of the holiday season, saying customers remain “choiceful” and that higher tariffs will continue to weigh on earnings.
Speaking to CNBC, Spring said the company is taking a “prudent view” of the quarter as it faces tough year-over-year comparisons.
He added that it remains unclear how “aspirational customers,” who prefer in-store shopping but are financially strained, will spend during the holidays.
“We’re pleased with the fourth quarter to date, but we have a big holiday in front of us,” Spring reportedly said.
The retailer’s commentary comes as the broader industry closely watches how price-sensitive shoppers allocate their budgets amid rising costs and shifting preferences.
M Price Action: Macy’s shares were down 1.28% at $22.42 at the time of publication on Wednesday, according to Benzinga Pro data.
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