Macy’s (NYSE:M) Posts Quarterly Earnings Results, Beats Expectations By $0.12 EPS

Macy’s (NYSE:M) posted its earnings results on Wednesday. The company reported $1.67 earnings per share for the quarter, topping analysts’ consensus estimates of $1.55 by $0.12, FiscalAI reports. Macy’s had a net margin of 2.10% and a return on equity of 15.57%. The company had revenue of $7.92 billion for the quarter, compared to analyst estimates of $7.48 billion. During the same quarter in the prior year, the business posted $1.80 EPS. The firm’s revenue was down 1.7% compared to the same quarter last year.

Here are the key takeaways from Macy’s’ conference call:

• Financial outperformance: Q4 adjusted diluted EPS was $1.67 and full-year adjusted EPS was $2.32, both above guidance, with strong free cash flow ($797M), $1.2B cash on hand and leverage below the 2.5x target.
• Brand momentum: Bloomingdale’s delivered standout strength (Q4 +9.9%, FY +7.4%) and Macy’s Reimagine program (now 200 stores, ~60% of go‑forward fleet) is driving go‑forward comparable sales and higher AURs across store and digital channels.
• Cautious 2026 outlook and tariff headwinds: Full‑year guidance calls for net sales $21.4B–$21.65B and comps -0.5% to +0.5% with adjusted EPS $1.90–$2.10 (below prior-year EPS of $2.15); tariffs are expected to reduce FY EPS by roughly $0.10–$0.20 and depress Q1 margins by ~40–60 bps.
• Real estate monetization and fleet optimization: Macy’s is targeting a ~350 go‑forward fleet, plans ~65 more closures through 2028, and raised expected store‑monetization proceeds to $650M–$700M (remaining ~$250M–$300M, ~ $1/share).
• Investments and modernization: 2026 capital spend is targeted around $800M with increased investment in Bloomingdale’s, omnichannel/technology and AI use cases (35+ in development), while continuing dividends and ~ $1.1B remaining buyback authorization.

Macy’s Trading Up 4.8%

Shares of M opened at $17.73 on Thursday. The firm has a market cap of $4.71 billion, a P/E ratio of 10.49 and a beta of 1.51. The company has a debt-to-equity ratio of 0.56, a quick ratio of 0.18 and a current ratio of 1.25. The business has a 50-day moving average of $20.47 and a 200 day moving average of $20.03. Macy’s has a fifty-two week low of $9.76 and a fifty-two week high of $24.41.

Macy’s Increases Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, April 1st. Investors of record on Friday, March 13th will be issued a $0.1915 dividend. This is an increase from Macy’s’s previous quarterly dividend of $0.18. The ex-dividend date of this dividend is Friday, March 13th. This represents a $0.77 annualized dividend and a yield of 4.3%. Macy’s’s payout ratio is 45.56%.

Key Stories Impacting Macy’s

Here are the key news stories impacting Macy’s this week:

• Positive Sentiment: Q4 beat on EPS and revenue; same-store sales unexpectedly rose, led by Bloomingdale’s — the results topped Street estimates and are the main driver of the rally. Why Are Macy’s (M) Shares Soaring Today
• Positive Sentiment: Company says return-to-growth is structural: merchandising, store reimagining and better use of loyalty data/AI are credited for positive comps — suggests improvement is more than seasonal. Macy’s Credits AI, Reimagined Stores and Loyalty Data for Return to Growth
• Positive Sentiment: Analysts and press highlight the surprise comps and Bloomingdale’s strength as evidence the turnaround is working, attracting fresh buyer interest. Macy’s Posts Surprise Growth in Its Same-Store Sales. Its Stock Is Surging.
• Neutral Sentiment: Unusually large call-option activity was observed ahead of the print (heavy call buying), which can amplify intraday moves but is not a fundamental change.
• Neutral Sentiment: Telsey Advisory reaffirmed a “market perform” rating with a $25 price target — supportive but not a strong buy signal. Telsey Advisory Group Reaffirms Market Perform on Macy’s
• Negative Sentiment: Macy’s issued cautious FY guidance, forecasting weaker annual sales and profit as consumer spending remains tight — that guidance caps upside and explains why some traders treated the beat as only partly transformative. Macy’s forecasts weak annual sales, profit; sees tariff relief
• Negative Sentiment: JPMorgan cut its price target from $24 to $21 and moved to neutral — a reminder some analysts remain cautious despite the beat. JPMorgan Lowers Macy’s Price Target
• Negative Sentiment: Hot PPI/inflation prints are a macro headwind for retailers — higher input costs and weaker real consumer spending could pressure margins and future sales. PPI Comes in Hot: +0.7%, +3.9% Core YoY

Analyst Ratings Changes

A number of analysts have commented on M shares. Telsey Advisory Group reissued a “market perform” rating and set a $25.00 price objective on shares of Macy’s in a report on Wednesday. Guggenheim started coverage on Macy’s in a report on Tuesday, December 9th. They issued a “neutral” rating on the stock. UBS Group lifted their target price on Macy’s from $8.00 to $9.00 and gave the company a “sell” rating in a research report on Monday, March 9th. Morgan Stanley upped their price target on Macy’s from $20.00 to $21.00 and gave the stock an “equal weight” rating in a report on Friday, December 5th. Finally, Jefferies Financial Group reissued a “buy” rating and issued a $22.00 price target on shares of Macy’s in a research report on Wednesday. One equities research analyst has rated the stock with a Buy rating, ten have assigned a Hold rating and three have assigned a Sell rating to the company’s stock. According to MarketBeat, Macy’s has an average rating of “Reduce” and an average price target of $20.00.

Institutional Trading of Macy’s

Hedge funds and other institutional investors have recently made changes to their positions in the stock. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. increased its position in shares of Macy’s by 38.3% during the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 162,989 shares of the company’s stock valued at $2,047,000 after buying an additional 45,149 shares during the period. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its position in Macy’s by 5.3% during the first quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 1,116,170 shares of the company’s stock valued at $14,019,000 after purchasing an additional 55,821 shares in the last quarter. Focus Partners Wealth lifted its position in Macy’s by 33.1% in the 1st quarter. Focus Partners Wealth now owns 58,197 shares of the company’s stock worth $731,000 after buying an additional 14,489 shares during the last quarter. Cetera Investment Advisers lifted its holdings in shares of Macy’s by 49.6% in the 2nd quarter. Cetera Investment Advisers now owns 24,300 shares of the company’s stock worth $283,000 after acquiring an additional 8,053 shares during the last quarter. Finally, Invesco Ltd. lifted its stake in Macy’s by 160.5% in the second quarter. Invesco Ltd. now owns 4,283,107 shares of the company’s stock worth $49,941,000 after purchasing an additional 2,639,132 shares during the last quarter. 87.36% of the stock is currently owned by institutional investors.

About Macy’s

Macy’s, Inc is a leading American omnichannel retailer operating under the Macy’s brand, as well as specialty divisions Bloomingdale’s and Bluemercury. The company’s retail portfolio encompasses full-line department stores, fashion-focused specialty outlets and a high-end beauty chain, offering consumers a wide array of apparel, footwear, accessories, cosmetics and home furnishings. Through its integrated network of physical stores and digital platforms, Macy’s seeks to deliver a seamless shopping experience that blends in-store service with online convenience.

The company’s product assortment spans men’s, women’s and children’s clothing, beauty and personal care products, housewares and home décor.