Macy's Q4 sales slightly beat estimates on higher credit card, Media Network revenues

Overview

• U.S. department store operator's Q4 sales slightly beat analyst expectations, comparable sales grew 1.8%

• Adjusted EPS for Q4 was $1.67, with net income at $507 mln

• Company repurchased 2.3 mln shares for $50 mln in Q4, expanded strategic initiatives

Outlook

• Macy's sees fiscal 2026 net sales of $21.4 bln to $21.65 bln

• Company expects fiscal 2026 comparable sales change between -0.5% and 0.5%

• Macy's forecasts fiscal 2026 adjusted diluted EPS of $1.90 to $2.10

Result Drivers

• BLOOMINGDALE'S PERFORMANCE - Bloomingdale’s comparable sales rose 9.9% in Q4, with the company citing its best holiday performance on record

• CREDIT CARD AND MEDIA REVENUE - Higher credit card revenues and increased Macy’s Media Network revenue contributed to other revenue growth

• TARIFF IMPACTS - Gross margin rate declined 50 basis points, primarily due to approximately 60 basis point tariff impact

Company press release: ID:nBw8cZJ64a

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 2 "strong buy" or "buy", 9 "hold" and 2 "sell" or "strong sell"

• The average consensus recommendation for the department stores peer group is "buy."

• Wall Street's median 12-month price target for Macy's Inc is $22.00, about 30% above its March 17 closing price of $16.92

• The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 11 three months ago

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