Macy's reports strongest Q3 results in over three years

Macy’s, Inc. reported third-quarter 2025 results that exceeded expectations and raised its full-year guidance, reflecting continued momentum in its “Bold New Chapter” strategy. Net sales reached 4.7 billion dollars, surpassing the company’s forecast, while comparable sales increased 2.5 percent on an owned basis and 3.2 percent on an owned-plus-licensed-plus-marketplace basis, supported by stronger-than-anticipated performance across all nameplates. GAAP diluted EPS was 4 cents, and adjusted diluted EPS came in at 9 cents, helped by better-than-expected net sales, gross margin and disciplined SG&A management.

Reflecting its strong performance, Macy’s raised its full-year outlook. The retailer now expects adjusted earnings per share of up to 2.20 dollars, an increase from its previous high-end guide of 2.05 dollars issued in September. Macy’s also lifted its full-year net sales forecast to a range of 21.5 billion dollars to 21.6 billion dollars, above prior guidance—signaling confidence in continued momentum through the key holiday trading period.

Chairman and CEO Tony Spring said the quarter marked Macy’s strongest sales performance in more than three years. “The meaningful enterprise-wide changes we’ve made are resonating with customers,” he said. “As we enter the holiday season, we are well-positioned with compelling merchandise and an omni-channel experience rooted in hospitality that delivers both inspiration and value.”

The quarter delivered several strong performances across Macy’s key businesses. Reimagine 125 stores continued to outperform the broader fleet with owned comparable sales up 2.3 percent. Bloomingdale’s posted its strongest growth in 13 quarters, with comparable sales rising 8.8 percent on an owned basis and 9 percent on an owned-plus-licensed-plus-marketplace basis. Bluemercury delivered another quarter of growth with a 1.1 percent increase in comparable sales. Macy’s returned approximately 99 million dollars to shareholders through dividends and share repurchases during the quarter.

Overall, net sales declined 0.6 percent year-over-year due to planned store closures, but comparable sales grew across all banners. Macy’s nameplate comparable sales rose 1.4 percent on an owned basis and 2 percent on owned-plus-licensed-plus-marketplace basis, with its go-forward store base delivering stronger gains. Bloomingdale’s net sales rose 8.6 percent, while Bluemercury sales increased 3.8 percent. Other revenue climbed 24.2 percent to 200 million dollars, driven by a 31.7 percent increase in credit card revenue, reflecting portfolio stability.

Gross margin weakened slightly by 20 basis points to 39.4 percent, primarily due to a 50-basis-point tariff impact, though mitigation efforts outperformed expectations. Adjusted EBITDA reached 285 million dollars, representing 5.8 percent of total revenue, with Core adjusted EBITDA rising to 273 million dollars from 207 million dollars a year earlier.

Shareholder returns remained a priority, with 49 million dollars paid in dividends and 50 million dollars spent on repurchasing 2.8 million shares in the quarter. Year-to-date, Macy’s has returned 350 million dollars to shareholders and retains 1.2 billion dollars under its existing repurchase authorization.