Updated 4:25 p.m. ET March 18
Macy’s Inc. posted comparable sales increases across its portfolio in the fourth quarter and wrapped up 2025 confident that its three-year strategy to return to consistent growth is on track.
“We delivered a strong performance in the fourth quarter, growing comparable sales at Macy’s, Bloomingdale’s and Bluemercury, growing across stores and digital, and growing wholesale and marketplace. It’s what I call a trifecta performance,” Tony Spring, Macy’s Inc. chairman and chief executive officer, told WWD. “There was growth across the board — no matter how you look at our business.”
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Spring said the fourth-quarter momentum is spilling into the first quarter of 2026, and that there are no indications, yet, that rising fuel costs due to the Iran war are impeding the progress. For the first quarter so far, the CEO said: “We still see healthy performances at all three brands. The consumer is resilient, buying newness, buying spring fashion when the weather is warm and coats when the weather is cold.”
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For the fourth quarter ended Jan. 31, Macy’s Inc.’s net sales, inclusive of store closures, decreased 1.7 percent to $7.6 billion. But comparable sales — considered a better measure of the company’s performance — rose 1.8 percent, and on a go-forward basis, there was comparable sales growth of 2 percent. Go-forward sales exclude stores that are being closed.
Spring indicated that fourth-quarter sales results, on a total and comparable basis, exceeded company guidance, and that the company returned to annual comparable sales growth in 2025. Last year, comparable sales were up 1.5 percent, while in 2024, comparable sales were down 0.9 percent. Macy’s Inc.’s fourth-quarter net sales, comparable sales and core adjusted earnings before interest, taxes, depreciation and amortization all exceeded guidance.
Fourth-quarter adjusted EBITDA totaled $840 million, down from $903 million in the year-ago period. Core adjusted EBITDA was $837 million, versus $862 million in the year-ago period.
Net income rose to $507 million from $342 million in the year-ago period. Diluted earnings per share were $1.84, compared to $1.21 in the year-ago quarter.
The gross margin rate of 35.2 percent decreased 50 basis points primarily due to an approximate 60 basis point tariff impact, which was in-line with the company’s expectations.
Spring said the fourth-quarter and year-end results “emboldened us to double down on our reimagine” program. Another 75 stores will be reimagined this year, bringing the total to 200 since the program launched in 2024. Macy’s reimagined stores are those receiving significant investments for increased staffing in high-traffic areas such as women’s shoes and fitting room areas, fresher products and improved visuals. The updated stores saw comparable sales rise 0.9 percent in the fourth quarter.
Still, the corporation is taking a conservative view to 2026, projecting sales of $21.4 billion to $21.65 billion for 2026, with comparable sales down 0.5 percent to up 0.5 percent. Adjusted diluted earnings per share are projected at $1.90 to $2.10.
Macy’s Inc. stock price was up 4.7 percent, or 80 cents, to $17.72, at the closing bell Wednesday.
“We call it a prudent [forecast] meaning it’s reasonable and well informed,” Spring said. “We are trying to make sure we are both realistic and clear-eyed how we guide. The guide is not a cap.”
Holiday destination categories, including fragrances, jewelry and handbags outperformed the overall business in the fourth quarter, while women’s contemporary, denim, dresses and tailored clothing, were also among the best-performing categories.
Regarding the store fleet, Spring said there’s “significant room” for expansion of Bloomie’s and Bloomingdale’s outlets. Currently, there are 25 Bloomingdale’s outlets and four Bloomie’s, which are smaller, contemporary-oriented versions of the full-line stores.
But Spring also said there could be some opportunities to open more Bloomingdale’s department stores “if they reveal themselves in markets where we don’t have a presence.” Bloomingdale’s will be examining opportunities presented by Saks Global closing several Saks Fifth Avenue and Neiman Marcus stores. There are currently 31 Bloomingdale’s department stores, but none in Texas and the Pacific Northwest.
The company has decided to slow down the pace of its Macy’s department store closings. The plan, announced in 2024, was to shutter approximately 150 units in three years, leaving about 350 operating. There are still 64 locations to close, 14 of which will shut down this year, and the rest by 2028. “We can be patient,” Spring said, noting the decision to delay closings was made due to the health of the Macy’s Inc. balance sheet, a desire to maximize the value of those real estate transactions, including potential property and lease sales, and the fact that the stores involved are underproductive but not unprofitable.
Another opportunity stems from two big milestones Macy’s celebrates this year — its 50th Fourth of July Fireworks extravaganza and the 100th anniversary of its Thanksgiving Day Parade. Spring said both milestone events pose enhanced merchandise and marketing tie-ins.
During a conference call with retail industry analysts, Spring said 60 brands were introduced to the Macy’s assortment last year, including Abercrombie Kids, BCBG and Good American. At Bloomingdale’s, some key brands recently introduced include Christian Louboutin, Toteme and Victoria Beckham Beauty. At both stores, many of the top brands already carried also received wider distribution.
Macy’s digital channel represents approximately one-third of annual sales. “It is benefiting from a modernized macys.com, inspired by what we’re doing in stores. Over the past year, we have shifted to a more editorialized approach that reinforces our fashion authority and facilitates shopping across categories that drives commerce.
“As we wrap up year two of the Bold New Chapter, I’m pleased with the growth and progress we’re making against our strategic priorities,” Spring said in a statement Wednesday. “At Macy’s, we are offering more relevant brands, stronger storytelling and investing in our colleagues so we can better serve the customer. Bloomingdale’s exceptional performance underscores its ability to elevate the customer experience and capture demand across premium contemporary to luxury businesses. Looking to 2026 and beyond, we are ready to build on our progress.”
Macy’s Bold New Chapter is a three-year strategy that was introduced in February 2024. It centers around closing about 150 Macy’s department stores, investing in healthy Macy’s stores, accelerating growth in the luxury sector and in online sales, expanding the brick-and-mortar footprints of Bloomie’s and Bluemercury, and monetizing assets, such as certain real estate holdings.
By division, Macy’s net sales, inclusive of store closures, were down 3.2 percent in the fourth quarter. Comparable sales were up 0.4 percent. Macy’s go-forward comparable sales were up 0.6 percent.
Bloomingdale’s net sales rose 8.5 percent with a comparable sales increase of 9.9 percent. The upscale department store is riding a string of quarterly comparable-store gains, has stepped up investments in renovations, and is capitalizing on disruption in the industry, notably the Saks Global bankruptcy.
Bluemercury’s net sales were up 2.5 percent; comparable sales grew 1.3 percent.
In 2025, Macy’s Inc.’s net sales decreased 2.4 percent to $21.8 billion. Adjusted diluted earnings per share in 2025 were $2.15 in 2025.
Operating income rose to $1.03 billion, up from $909 million in 2024. Net income rose to $642 million from $582 million in 2024.
Gross margin rate of 38 percent declined 40 basis points. The decline was attributable to a 40 basis-point tariff impact and proactive markdowns on remaining early spring product in the second quarter to maintain healthy inventories and product bought under prior tariff rates.
The company ended fiscal year 2025 with cash and cash equivalents of $1.2 billion and had $2 billion of available borrowing capacity under its asset-based credit facility.
Total debt was $2.4 billion. The company indicated it has no material long-term debt maturities until 2030.