Macy’s (M) Q1 2026 earnings summary

Executive summary

• Net sales for Q1 2025 were $4.6 billion, down 5.1% year-over-year, but exceeded guidance due to strong omnichannel and luxury segment performance, despite store closures and softer Macy's results.

• Adjusted diluted EPS was $0.16, above guidance but down from $0.27 in Q1 2024; GAAP diluted EPS was $0.13.

• Bloomingdale's and Bluemercury delivered positive comparable sales growth, offsetting Macy's declines.

• The company continues to execute its Bold New Chapter strategy, focusing on customer experience, store reimagination, and luxury growth.

• Returned $152 million to shareholders via dividends and share repurchases.

Financial highlights

• Comparable sales declined 2.0% on an owned basis and 1.2% on an owned-plus-licensed-plus-marketplace basis; go-forward business comps declined 0.9%.

• Gross margin rate held steady at 39.2%; merchandise margin improved 40 bps, offset by higher delivery expense.

• SG&A expense was $1.9 billion (39.9% of revenue), up 170 bps year-over-year due to lower sales.

• Adjusted EBITDA was $324 million (6.8% of revenue), down from $364 million (7.3%) in Q1 2024; core adjusted EBITDA margin was 6.4%.

• Net income for Q1 2025 was $38 million; adjusted net income was $46 million.

Outlook and guidance

• FY net sales expected at $21.0–$21.4 billion; comparable sales projected to decline 2.0% to flat; adjusted diluted EPS guidance of $1.60–$2.00.

• Adjusted EBITDA margin guidance: 7.4%–7.9%; core adjusted EBITDA margin: 7.0%–7.5%.

• Q2 net sales expected at $4.65–$4.75 billion; comps down 1.5% to up 0.5%; adjusted EPS of $0.15–$0.20.

• Guidance reflects ongoing tariffs, a more promotional environment, and no rebound in international tourism.

• Management expects selective price increases across product categories due to new tariffs.