Macy’s (M) Q3 2026 earnings summary

Executive summary

• Third quarter results exceeded expectations, with net sales reaching $4.7 billion and the strongest comparable sales growth in 13 quarters, driven by the Bold New Chapter strategy and positive performance across all nameplates, especially Bloomingdale's.

• Adjusted diluted EPS was $0.09, up 125% year-over-year and above guidance, supported by higher net sales, gross margin, and SG&A control.

• Initiatives in omnichannel experience, product curation, and customer service drove higher Net Promoter Scores and customer engagement.

• Investments in digital, technology, and omni-channel capabilities continued, while cost containment and store closures supported profitability.

• Returned $99 million to shareholders via dividends and share repurchases.

Financial highlights

• Net sales for Q3 were $4.7B, down 0.6% year-over-year due to store closures, but up 2.9% excluding closures; comparable sales up 2.5% (owned) and 3.2% (O+L+M).

• Adjusted EPS was $0.09, above guidance and last year's $0.04; gross margin was 39.4% of net sales, down 20 bps year-over-year, mainly due to tariffs.

• SG&A expense declined $40M year-over-year, with leverage of 90 bps to 41.2% of revenue.

• Core adjusted EBITDA was $273M (5.6% of revenue); adjusted EBITDA was $285M (5.8% of revenue).

• GAAP net income was $11M; adjusted net income $26M.

Outlook and guidance

• Q4 net sales expected at $7.35B–$7.5B; comparable sales guidance: -2.5% to flat; Go-Forward comps down 2% to flat.

• Full-year net sales guidance raised to $21.475B–$21.625B; adjusted EPS guidance increased to $2.00–$2.20.

• Gross margin for the year expected at 37.7%–37.9%, with tariff impact lower than previously anticipated.

• FY25 core adjusted EBITDA margin rate expected at 7.5%–7.7%.

• Guidance assumes continued traction of Bold New Chapter initiatives and stable tariffs.