Macy’s reported better-than-expected fourth-quarter results, with gains across all three of its banners, signalling continued progress in its multi-year turnaround strategy.
The department store group also returned to annual comparable sales growth in 2025 for the first time in three years, with comps up 1.5% for the full year.
Net income rose to $507 million, or $1.84 per share, for the quarter ended Jan. 31, up from $342 million, or $1.21 per share, a year earlier. Adjusted earnings per share came in at $1.67, ahead of analyst expectations of $1.53.
Net sales declined 1.7% to $7.64 billion but still edged past forecasts. Comparable sales increased 1.8%, reflecting improved performance across banners.
At Bloomingdale’s, comparable sales jumped 9.9%, driven by a standout holiday season. Bluemercury posted a 1.3% comp increase.
The core Macy’s banner delivered more modest gains, with comparable sales up 0.4%. Performance improved slightly in priority locations, with “go-forward” stores — those earmarked for long-term investment, seeing comps rise 0.6%, while “reimagined” stores increased 0.9%.
The company’s media network also showed momentum, with revenue climbing 12.5% to $72 million.
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CEO Tony Spring said the company is making steady progress under its “Bold New Chapter” strategy, which focuses on upgrading stores, refining assortments and expanding its presence in higher-margin categories.
The plan includes closing around 150 underperforming Macy’s locations while prioritising investment in roughly 350 “go-forward” stores. It also targets expansion in luxury, with plans to open about 15 Bloomingdale’s stores and at least 30 Bluemercury locations over three years.
So far, approximately 125 stores have been “reimagined,” with another 75 set for upgrades this year.
Despite the improving performance, Macy’s struck a cautious tone on the year ahead, citing macroeconomic and geopolitical uncertainty that could weigh on discretionary spending.
The retailer also expects tariffs to have a “meaningful impact” in the first quarter, though that pressure is expected to ease as the year progresses.
For fiscal 2026, Macy’s forecasts sales of $21.4 billion to $21.65 billion, with comparable sales ranging from down 0.5% to up 0.5%.
Adjusted earnings per share are projected between $1.90 and $2.10, indicating a measured outlook as the turnaround continues.
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