Macy’s Inc. reported third‑quarter 2025 results that surpassed expectations, with net sales of $4.7 billion—down 0.6 % year‑over‑year but 5 % above the consensus estimate of $4.6 billion. Adjusted diluted earnings per share rose to $0.09, a $0.22 beat over the consensus range of –$0.13 to –$0.14, driven by disciplined cost management and a favorable mix of high‑margin luxury and beauty sales.
Gross margin slipped to 39.4 % from 39.6 % in the prior year, a 20‑basis‑point decline largely attributable to a 50‑basis‑point tariff hit on imported goods. The company offset this pressure with a 2.5 % increase in owned‑basis comparable sales and a 3.2 % rise on an owned‑plus‑licensed‑plus‑marketplace basis, reflecting stronger demand in Bloomingdale’s and Bluemercury and a growing share of online sales.
Bloomingdale’s posted an 8.8 % owned‑basis comparable sales increase, while Bluemercury achieved 1.1 % growth, underscoring the success of the “Bold New Chapter” strategy that prioritizes luxury and beauty. The go‑forward business—excluding closed Macy’s locations—recorded 2.7 % comparable sales growth, indicating that the company’s store‑reimagining and digital initiatives are resonating with shoppers.
Management raised its full‑year outlook, projecting adjusted EPS of $2.00 to $2.20—up from the previous $1.70 to $2.05 range—and net sales of $21.48 billion to $21.63 billion. The guidance reflects confidence in the holiday quarter and the continued execution of the “Bold New Chapter” strategy, with CEO Tony Spring noting that the quarter’s performance demonstrates the acceleration of the company’s transformation and the resilience of its core brands.
The results and guidance signal that Macy’s is navigating a challenging retail environment with a mix of cost discipline, strategic store optimization, and a focus on high‑margin segments. While tariff headwinds and a modest year‑over‑year sales decline temper the outlook, the company’s ability to beat earnings expectations and lift guidance suggests that its turnaround plan is gaining traction and that management remains optimistic about the holiday season and long‑term growth prospects.
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