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

Macy’s (NYSE:M) announced its quarterly earnings data on Wednesday. The company reported $1.67 earnings per share (EPS) for the quarter, topping the consensus estimate of $1.55 by $0.12, FiscalAI reports. The company had revenue of $7.92 billion for the quarter, compared to analysts’ expectations of $7.48 billion. Macy’s had a net margin of 2.84% and a return on equity of 14.22%. The business’s revenue was down 1.7% compared to the same quarter last year. During the same quarter in the previous year, the company posted $1.80 EPS.

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 Stock Up 1.9%

Shares of NYSE M opened at $18.06 on Friday. Macy’s has a 52-week low of $9.76 and a 52-week high of $24.41. The company has a debt-to-equity ratio of 0.50, a quick ratio of 0.18 and a current ratio of 1.49. The stock has a market cap of $4.80 billion, a P/E ratio of 7.78 and a beta of 1.51. The firm has a 50 day moving average price of $20.36 and a 200 day moving average price of $20.02.

Macy’s Increases Dividend

The firm 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. This represents a $0.77 annualized dividend and a yield of 4.2%. The ex-dividend date is Friday, March 13th. Macy’s’s dividend payout ratio (DPR) is currently 45.56%.

Analysts Set New Price Targets

Several research firms have weighed in on M. Zacks Research downgraded Macy’s from a “hold” rating to a “strong sell” rating in a report on Friday, March 13th. Evercore increased their target price on Macy’s from $14.00 to $21.00 and gave the stock a “cautious” rating in a report on Friday, December 5th. UBS Group raised their target price on Macy’s from $8.00 to $9.00 and gave the stock a “sell” rating in a research report on Monday, March 9th. JPMorgan Chase & Co. lowered their price target on Macy’s from $24.00 to $21.00 and set a “neutral” rating on the stock in a research report on Wednesday. Finally, Morgan Stanley increased their price objective on Macy’s from $20.00 to $21.00 and gave the stock an “equal weight” rating in a research note on Friday, December 5th. One 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. Based on data from MarketBeat, the stock has an average rating of “Reduce” and an average target price of $18.90.

Institutional Investors Weigh In On Macy’s

Hedge funds and other institutional investors have recently made changes to their positions in the business. Dimensional Fund Advisors LP lifted its position in shares of Macy’s by 3.2% during the 4th quarter. Dimensional Fund Advisors LP now owns 16,145,972 shares of the company’s stock valued at $356,020,000 after acquiring an additional 494,280 shares during the period. State Street Corp boosted its stake in shares of Macy’s by 0.5% in the 2nd quarter. State Street Corp now owns 9,420,372 shares of the company’s stock valued at $111,547,000 after purchasing an additional 45,997 shares in the last quarter. Arrowstreet Capital Limited Partnership increased its stake in shares of Macy’s by 39.9% in the 3rd quarter. Arrowstreet Capital Limited Partnership now owns 5,950,950 shares of the company’s stock valued at $106,701,000 after acquiring an additional 1,697,412 shares in the last quarter. Invesco Ltd. increased its stake in shares of Macy’s by 160.5% in the 2nd quarter. Invesco Ltd. now owns 4,283,107 shares of the company’s stock valued at $49,941,000 after acquiring an additional 2,639,132 shares in the last quarter. Finally, AQR Capital Management LLC grew its holdings in Macy’s by 42.7% in the fourth quarter. AQR Capital Management LLC now owns 4,000,339 shares of the company’s stock worth $87,687,000 after purchasing an additional 1,197,785 shares during the period. 87.36% of the stock is currently owned by institutional investors and hedge funds.

Key Headlines Impacting Macy’s

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

• Positive Sentiment: Q4 beat on revenue and EPS; Macy’s reported $7.92B in revenue and $1.67 adjusted EPS, both topping estimates and driven by positive comps. Macy’s (NYSE:M) Q4 CY2025: Beats On Revenue, Stock Soars
• Positive Sentiment: Management attributes the turnaround to AI, reimagined stores and better use of loyalty data — a structural change that supports sustainable comp recovery. Macy’s Credits AI, Reimagined Stores and Loyalty Data for Return to Growth
• Positive Sentiment: Market reaction: shares jumped after the print as investors rotated back into the name on the surprise sales metric and progress at Bloomingdale’s. Why Are Macy’s (M) Shares Soaring Today
• Neutral Sentiment: Company provided slides and an earnings presentation for the quarter — useful for investors evaluating the durability of the comp rebound and store-refresh plans. Macy’s, Inc. 2025 Q4 – Results – Earnings Call Presentation
• Neutral Sentiment: Several firms pared price targets and kept neutral/hold ratings (TD Cowen to $20 hold; JPMorgan to $21 neutral; Telsey reaffirmed market perform at $20) — these cuts temper upside despite the beat. Macy’s Analysts Slash Their Forecasts After Q4 Results
• Negative Sentiment: Macy’s issued cautious full-year guidance (forecasting weaker annual sales/profit), and Reuters highlights the company’s warning on tight consumer spending and only mid-year tariff relief — a near-term headwind for estimates. Macy’s forecasts weak annual sales, profit; sees tariff relief
• Negative Sentiment: Some analysts cut targets aggressively (Citigroup to $18, roughly in line with the current price) — indicates skepticism about upside absent clearer evidence that comps will sustain. Benzinga: Analyst Coverage

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.