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Macy’s, Inc. (NYSE: M) has reported its financial results for the first quarter of 2025, showcasing a stronger-than-expected performance that exceeded prior guidance in several areas. The company’s strategic initiatives and consistent growth across its nameplates have positioned it well in a challenging retail environment.
 

Macy’s, Inc. Reports Better-than-Expected Results for First-Quarter 2025

The first quarter of 2025 has proven to be a successful period for Macy’s, Inc., with net sales reaching $4.6 billion, surpassing the company’s prior guidance. This figure is a notable achievement given the backdrop of a 5.1% decrease in net sales compared to the same quarter in 2024. The company’s comparable sales were down 2.0% on an owned basis and 1.2% on an owned-plus-licensed-plus-marketplace basis, yet these figures were better than anticipated.

The company reported a GAAP diluted earnings per share (EPS) of $0.13 and an adjusted diluted EPS of $0.16, exceeding the expected EPS of $0.14. This performance is attributed to the successful execution of strategic initiatives under the Bold New Chapter strategy, which improved customer experience and operational efficiency.

Comparing the current performance against expectations, Macy’s, Inc. outperformed in several key areas. Bloomingdale’s and Bluemercury both reported positive comparable sales growth, with Bloomingdale’s achieving a 3.0% increase on an owned basis and 3.8% on an owned-plus-licensed-plus-marketplace basis.

Bluemercury continued its growth trajectory with a 1.5% increase, marking its 17th consecutive quarter of positive comparable sales growth. These results highlight the strength of Macy’s diversified brand portfolio and its ability to navigate a complex retail environment.
 

Macy’s, Inc. Reaffirms Net Sales Guidance

Looking ahead, Macy’s, Inc. has reaffirmed its annual net sales guidance, maintaining its outlook of $21.0 billion to $21.4 billion. The company’s confidence in its financial position is evident, even as it navigates a landscape marked by tariffs, moderated consumer spending, and heightened competition. Despite these challenges, Macy’s remains committed to its strategic goals and is optimistic about its ability to adapt to changing market conditions.

The company anticipates a decrease in comparable owned-plus-licensed-plus-marketplace sales, projecting a decline of approximately 2.0% to 0.5% compared to 2024. However, Macy’s continues to focus on its go-forward business, expecting a similar decrease in comparable sales. Adjusted EBITDA as a percentage of total revenue is expected to range between 7.4% and 7.9%, slightly lower than the previous guidance of 8.4% to 8.6%.

Adjusted diluted EPS for the year is now projected to be between $1.60 and $2.00, a revision from the earlier forecast of $2.05 to $2.25. The company cites several factors for this adjustment, including the impact of fiscal 2024 store closures and the competitive promotional landscape. Despite these adjustments, Macy’s remains focused on its long-term strategy and is confident in its ability to deliver sustainable, profitable growth.

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