Macy's (NYSE:M) Surpasses Earnings Expectations, Shares Surge

Macy’s (NYSE:M) reported better-than-expected first-quarter results but lowered its full-year 2025 outlook, citing the impact of tariffs, cautious consumer spending, and heightened promotional activity.

For Q1, the retailer posted adjusted earnings per share of $0.16, ahead of the $0.14 consensus. Revenue came in at $4.6 billion, topping estimates of $4.4 billion.

Looking ahead, Macy’s cut its 2025 EPS guidance to a range of $1.60–$2.00, down from $2.05–$2.25 and below the $1.93 analyst consensus. The company maintained its net sales outlook at $21.0–$21.4 billion, in line with expectations.

Adjusted EBITDA margin is now forecast between 7.4% and 7.9%, compared to the prior 8.4%–8.6%. Core adjusted EBITDA margin is seen at 7.0%–7.5%, versus 8.0%–8.2% previously. Macy’s expects comparable sales for its go-forward business to decline by about 2% to flat.

• The consensus price target for Macy's, Inc. (NYSE:M) has been on a decline, indicating a cautious sentiment among analysts.
• Despite the overall declining trend, Deutsche Bank analyst Gabriella Carbone has set a significantly higher price target of $32 for Macy's stock.
• Macy's is expected to report a decline in its first-quarter earnings, highlighting the importance of the upcoming earnings report for investors.

Macy's, Inc. (NYSE:M) is a renowned retail company with a broad presence, operating 725 department stores across the U.S., Puerto Rico, and Guam, in addition to international operations through licensing agreements in Dubai and Kuwait. Since its rebranding from Federated Department Stores, Inc. in 2007, Macy's has offered a wide array of products, including apparel, accessories, cosmetics, and home furnishings, through its stores, websites, and mobile applications.

The consensus price target for Macy's stock has seen a downward trend over the past year, moving from an average target of $13.89 a year ago to $12.33 last quarter, and further down to $12 in the last month. This trend reflects a cautious sentiment among analysts regarding Macy's stock performance, influenced by challenges in the retail sector and evolving consumer behavior.

Despite the declining consensus price target, Deutsche Bank analyst Gabriella Carbone has set a higher price target of $32 for Macy's stock, suggesting that some analysts still see potential in the company's future performance. However, Macy's is anticipated to report a decline in its first-quarter earnings, lacking the optimal combination of factors necessary for an earnings beat.

Investors are advised to closely monitor Macy's upcoming earnings report, scheduled for release before the market opens on Wednesday, May 28. This report will offer critical insights into the company's financial health and future prospects, aiding investors in making informed decisions. Keeping abreast of Macy's latest earnings reports, strategic initiatives, and market conditions is crucial for understanding the company's position and potential for growth.

Macy’s (NYSE:M) reported a mixed set of fourth-quarter results for 2024, with earnings exceeding expectations but annual guidance falling short, sending shares down about 2% intra-day today.

The retailer posted earnings per share of $1.80 for the quarter, surpassing analyst projections of $1.54. Revenue came in at $7.77 billion, roughly in line with the expected $7.78 billion.

Comparable sales on an owned basis declined 1.1% year-over-year, an improvement from the 5.4% drop seen in the prior year but below the estimated 0.09% decline. However, owned-plus-licensed-plus-marketplace comparable sales inched up 0.2%. Macy’s gross margin declined to 35.7% from 37.5% a year ago but still came in slightly above the 35.6% forecast.

Looking ahead, Macy’s issued a cautious outlook for fiscal 2026, guiding EPS between $2.05 and $2.25, below the consensus estimate of $2.32. Full-year revenue is expected to range between $21 billion and $21.4 billion, compared to the Wall Street forecast of $21.3 billion.

The company anticipates comparable owned-plus-licensed-plus-marketplace sales to decline between 2.0% and 0.5% year-over-year. Meanwhile, its go-forward business segment is projected to see sales decline between 2.0% and flat.

Macy’s (NYSE:M) reported a mixed set of fourth-quarter results for 2024, with earnings exceeding expectations but annual guidance falling short, sending shares down about 2% intra-day today.

The retailer posted earnings per share of $1.80 for the quarter, surpassing analyst projections of $1.54. Revenue came in at $7.77 billion, roughly in line with the expected $7.78 billion.

Comparable sales on an owned basis declined 1.1% year-over-year, an improvement from the 5.4% drop seen in the prior year but below the estimated 0.09% decline. However, owned-plus-licensed-plus-marketplace comparable sales inched up 0.2%. Macy’s gross margin declined to 35.7% from 37.5% a year ago but still came in slightly above the 35.6% forecast.

Looking ahead, Macy’s issued a cautious outlook for fiscal 2026, guiding EPS between $2.05 and $2.25, below the consensus estimate of $2.32. Full-year revenue is expected to range between $21 billion and $21.4 billion, compared to the Wall Street forecast of $21.3 billion.

The company anticipates comparable owned-plus-licensed-plus-marketplace sales to decline between 2.0% and 0.5% year-over-year. Meanwhile, its go-forward business segment is projected to see sales decline between 2.0% and flat.

Macy's (NYSE:M) is a well-known American department store chain, offering a wide range of products from clothing to home goods. As a major player in the retail industry, Macy's competes with other giants like Nordstrom and Kohl's. The company is set to release its quarterly earnings on March 6, 2025, with analysts estimating earnings per share (EPS) of $1.55 and revenue of approximately $7.76 billion.

The anticipated EPS of $1.55 for the quarter ending January 2025 represents a significant year-over-year decline of 36.7%. This drop in earnings is coupled with a projected revenue of $7.78 billion, marking a 4.2% decrease compared to the same quarter last year. These figures suggest a challenging period for Macy's, reflecting broader retail industry trends and potential shifts in consumer spending.

Over the past 30 days, analysts have revised the consensus EPS estimate downward by 2.4%. This trend in earnings estimate revisions is important, as research shows a strong link between these revisions and short-term stock price movements. Investors should pay close attention to these changes, as they can provide insights into potential market reactions following Macy's earnings announcement.

Macy's current financial metrics offer additional context for its upcoming earnings report. The company has a price-to-earnings (P/E) ratio of 22.01, indicating how the market values its earnings. Its price-to-sales ratio is 0.16, suggesting a relatively low market valuation compared to its revenue. The enterprise value to sales ratio is 0.39, while the enterprise value to operating cash flow ratio is 8.25, reflecting cash flow efficiency.

Macy's maintains a moderate debt level with a debt-to-equity ratio of 0.34, and a current ratio of 1.26, indicating a healthy liquidity position to cover short-term liabilities. These financial metrics, along with the upcoming earnings report, will be crucial for investors to assess Macy's performance and future prospects in the competitive retail landscape.

Macy's (NYSE:M) is a well-known American department store chain, offering a wide range of products from clothing to home goods. As a major player in the retail industry, Macy's competes with other giants like Nordstrom and Kohl's. The company is set to release its quarterly earnings on March 6, 2025, with analysts estimating earnings per share (EPS) of $1.55 and revenue of approximately $7.76 billion.

The anticipated EPS of $1.55 for the quarter ending January 2025 represents a significant year-over-year decline of 36.7%. This drop in earnings is coupled with a projected revenue of $7.78 billion, marking a 4.2% decrease compared to the same quarter last year. These figures suggest a challenging period for Macy's, reflecting broader retail industry trends and potential shifts in consumer spending.

Over the past 30 days, analysts have revised the consensus EPS estimate downward by 2.4%. This trend in earnings estimate revisions is important, as research shows a strong link between these revisions and short-term stock price movements. Investors should pay close attention to these changes, as they can provide insights into potential market reactions following Macy's earnings announcement.

Macy's current financial metrics offer additional context for its upcoming earnings report. The company has a price-to-earnings (P/E) ratio of 22.01, indicating how the market values its earnings. Its price-to-sales ratio is 0.16, suggesting a relatively low market valuation compared to its revenue. The enterprise value to sales ratio is 0.39, while the enterprise value to operating cash flow ratio is 8.25, reflecting cash flow efficiency.

Macy's maintains a moderate debt level with a debt-to-equity ratio of 0.34, and a current ratio of 1.26, indicating a healthy liquidity position to cover short-term liabilities. These financial metrics, along with the upcoming earnings report, will be crucial for investors to assess Macy's performance and future prospects in the competitive retail landscape.