Macy’s, Inc. Reports Third Quarter 2025 Results

December 4, 2025  by Karen Parrish in Business Strategy, Industry   

Third Quarter Highlights

- Macy’s, Inc. achieved net sales of $4.7 billion, exceeding the company’s guidance range.

- Macy’s, Inc. reported comparable sales up 2.5% on an owned basis and up 3.2% on a comparable owned-plus-licensed-plus-marketplace (“O+L+M”) basis, surpassing the company’s guidance range and benefiting from better-than-expected performance across nameplates.

- The company reported GAAP diluted earnings per share (“EPS”) of $0.04; Adjusted diluted EPS was $0.09, above the company’s prior guidance range and driven by better-than-expected net sales, gross margin, and selling, general and administrative expense (“SG&A”).

- Macy’s Reimagine 125 locations achieved comparable sales growth of 2.3% on an owned basis and 2.7% growth on an owned-plus-licensed (“O+L”) basis, continuing to outperform the broader Macy’s nameplate.

- Bloomingdale’s comparable sales were up 8.8% on an owned basis and 9.0% on an O+L+M basis, the highest in 13 quarters.

- Bluemercury reported positive 1.1% comparable sales, achieving another quarter of growth.

- The company returned approximately $99 million to shareholders, consisting of $49 million in quarterly cash dividends and $50 million in share repurchases.

“Our third quarter sales were the strongest in 13 quarters, reflecting the acceleration of our Bold New Chapter strategy and demonstrating that the meaningful enterprise-wide changes we’ve made are resonating with customers,” said Tony Spring, chairman and chief executive officer of Macy’s, Inc. “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. With a strategy rooted in hospitality, our teams are focused on driving long-term, profitable growth.”

Third Quarter Results (comparisons are to the third quarter of 2024)

Macy’s, Inc. net sales, inclusive of store closures, decreased 0.6% to $4.7 billion, with comparable sales up 2.5% on an owned basis and up 3.2% on an O+L+M basis. Comparable sales reflect positive comparable sales at each of the company’s nameplates.

Macy’s, Inc. go-forward business comparable sales were up 2.7% on an owned basis and up 3.4% on an O+L+M basis. By nameplate:
Macy’s net sales, inclusive of store closures, were down 2.3% 3. Comparable sales were up 1.4% on an owned basis and up 2.0% on an O+L+M basis. Macy’s go-forward business comparable sales were up 1.7% on an owned basis and up 2.3% on an O+L+M basis. Reimagine 125 locations comparable sales were up 2.3% on an owned basis and up 2.7% on an O+L basis. Bloomingdale’s net sales were up 8.6%. Comparable sales were up 8.8% on an owned basis and up 9.0% on an O+L+M basis. Bluemercury net sales were up 3.8%. Comparable sales were up 1.1% on an owned basis. Other revenue of $200 million increased $39 million, or 24.2%.

Within Other revenue:
Credit card net revenues increased $38 million, or 31.7%, to $158 million, reflecting the health of the portfolio.
Macy’s Media Network net revenue was flat at $42 million.

Gross margin rate of 39.4% declined 20 basis points. The decline was primarily attributable to a 50-basis point tariff impact, which was better than company expectations reflecting positive response to mitigation actions.

Selling, general and administrative expense of $2.0 billion decreased $40 million, reflecting the net benefit from closed Macy’s locations and continued cost containment efforts, 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 decreased 90 basis points to 41.2%.

Asset sale gains were $12 million compared to $66 million. The company remains committed to closing underproductive stores. Its balance sheet strength provides flexibility to take a disciplined approach to transactions to achieve the optimal monetization value.

GAAP net income was $11 million, or 0.2% of total revenue, and Adjusted net income was $26 million, or 0.5% of total revenue. In the third quarter of 2024, net income was $28 million, or 0.6% of total revenue, and Adjusted net income was $11 million, or 0.2% of total revenue.

GAAP and Adjusted diluted EPS were $0.04 and $0.09, respectively. In the third quarter of 2024, GAAP and Adjusted diluted EPS were $0.10 and $0.04, respectively.

Adjusted earnings before interest, taxes, and depreciation and amortization was $285 million, or 5.8% of total revenue, and Core Adjusted EBITDA4 was $273 million, or 5.6% of total revenue. In the third quarter of 2024, Adjusted EBITDA was $273 million, or 5.6% of total revenue, and Core Adjusted EBITDA was $207 million, or 4.2% of total revenue.

Shareholder Returns

Through its quarterly dividend, the company returned $49 million in cash to shareholders in the third quarter of 2025, and $149 million in the year-to-date period. Additionally, on October 24, 2025, Macy’s, Inc.’s board of directors declared a regular quarterly dividend of 18.24 cents per share on Macy’s, Inc.’s common stock, payable on January 2, 2026, to shareholders of record at the close of business on December 15, 2025.

During the third quarter of 2025, the company repurchased 2.8 million of its shares for $50 million, bringing total year-to-date repurchases to 15.4 million shares for $201 million. The company had approximately $1.2 billion remaining under its $2.0 billion share repurchase authorization as of the end of the third quarter of 2025.

2025 Guidance

The company has revised its annual guidance, including raising net sales and adjusted diluted EPS guidance. Full year guidance continues to assume the consumer is more choiceful in the fourth quarter of 2025. It also assumes that current tariffs remain in place and provides flexibility to respond to changes in consumer demand and the competitive landscape. The company is confident that its strong financial position, diverse brand and category offerings, and range from off-price to luxury provide flexibility to adapt to the evolving environment. The company remains committed to the Bold New Chapter strategy and reinvesting most of the savings from the strategy to support long-term sales growth.

The full outlook for 2025, including fourth quarter of 2025, can be found in the presentation posted to www.macysinc.com/investors.

Conference Call and Webcasts

Macy’s, Inc.’s webcast, along with the associated presentation, is accessible at www.macysinc.com. A replay of the conference call will be available on the company’s website or by calling 1-877-660-6853, using passcode 13756432, about two hours after the conclusion of the call.