Macy’s (M) Q4 2025 earnings summary

Executive summary

• Achieved 0.2% Q4 comparable sales growth, the highest in 11 quarters, with Go-Forward comps up 0.6% and First 50 locations posting four consecutive quarters of positive comps.

• Closed 64 underperforming Macy's stores, ahead of plan, and focused investments on 125 reimagined locations; achieved record Net Promoter Scores.

• Luxury segments Bloomingdale's and Bluemercury delivered strong Q4 comps (Bloomingdale's up 6.5%, Bluemercury up 6.2%) and positive annual comps.

• Generated $679M in free cash flow, up 70.6% year-over-year, and ended with $1.3B in cash.

• Announced intent to resume share buybacks under $1.4B authorization, market permitting, and returned $192M to shareholders via dividends.

Financial highlights

• FY24 net sales were $22.3B, down 3.5% year-over-year; Q4 net sales were $7.8B, down 4.3% versus last year.

• Q4 adjusted EPS was $1.80, above guidance; FY24 adjusted EPS was $2.64, down 19.5% year-over-year.

• Q4 gross margin rate was 35.7%, down 80 bps; FY24 gross margin rate was flat at 38.4%.

• FY24 adjusted EBITDA was $1.98B (margin 8.6%); Q4 adjusted EBITDA margin was 11.3%.

• Asset sale gains contributed $144M for the year, driven by monetization of non-go-forward locations.

Outlook and guidance

• FY25 net sales expected at $21.0B–$21.4B, reflecting store closures and transformation.

• Comparable owned-plus-licensed-plus-marketplace sales projected down 2.0% to flat; Go-Forward comps down ~2% to flat.

• Adjusted EPS guidance of $2.05–$2.25; adjusted EBITDA margin of 8.4%–8.6%.

• CapEx planned at $800M, continuing reduced annual spend.

• Guidance reflects external uncertainties, with gross margin rate expansion expected from improved assortments and inventory management.