Macy’s Sees Strongest Sales Growth in 13 Quarters: Bold New Chapter Strategy Delivers Amid Guidance Hike
Q3 2025 Highlights: Best Comparable Sales Growth Since 2022
For the third quarter of 2025, Macy’s, Inc. delivered a rare bright spot in retail: the company reported its strongest comparable sales growth in over three years, surpassing guidance and market expectations. This momentum—dubbed the "Bold New Chapter" strategy—helped Macy’s and its go-forward businesses beat both top- and bottom-line guidance.
Net sales for the quarter were $4.71 billion, with comparable sales up 2.5% on an owned basis and 3.2% including licensed and marketplace sales (O+L+M). Notably, Bloomingdale’s delivered standout growth—its fifth consecutive quarter of gains and highest 13-week performance in the past 13 quarters. Macy’s go-forward business (focusing on growth stores and digital) notched its second consecutive comparable sales increase, showing the strategic plan is resonating across the brand portfolio.
| Q3 2025 | Q3 2024 | Year-over-Year Change | |
|---|---|---|---|
| Net Sales ($B) | 4.71 | 4.74 | -0.6% |
| Comp Sales (Owned) | +2.5% | NA | +2.5 pts |
| GAAP EPS | 0.04 | 0.10 | -0.06 |
| Adjusted EPS | 0.09 | 0.04 | +0.05 |
| Gross Margin | 39.4% | 39.6% | -0.2 pts |
| Adj. EBITDA ($M) | 285 | 273 | +12 |
Momentum Driven by Key Segments and Strategic Investment
The quarter’s positive comp sales came from both mainstays and subsidiaries:
- Bloomingdale’s: Net sales jumped 8.6%, and comp sales (owned + licensed + marketplace) were up 9.0%.
- Bluemercury: Sales climbed 3.8% with comp growth at 1.1%.
- Macy’s Reimagine 125: Stores in this transformation effort posted a 2.3% gain in owned comps, outpacing the core nameplate.
Gross margin slipped slightly (down 20 basis points to 39.4%) mainly from tariffs, but strong expense management reduced SG&A costs by $40 million versus the prior year. Macy’s also kept a disciplined approach on asset sales, closing underproductive stores but protecting value.
Guidance Raised: Leadership Bets on Sustained Progress
Buoyed by Q3 performance, Macy’s lifted its full-year outlook:
- Net Sales Guidance: Increased to $21.48-$21.63 billion, from $21.15-$21.45 billion prior.
- Adjusted EPS Guidance: Raised to $2.00-$2.20, up from $1.70-$2.05.
- Comparable Sales (O+L+M): Now expected to be flat to up 0.5% for the year (versus a prior forecast for a decline).
| Full Year 2025 Guidance | Previous | Current |
|---|---|---|
| Net Sales ($B) | 21.15-21.45 | 21.48-21.63 |
| Adj. EBITDA % | 7.4%-7.9% | 7.8%-8.0% |
| Core Adj. EBITDA % | 7.0%-7.5% | 7.5%-7.8% |
| Adj. Diluted EPS | 1.70-2.05 | 2.00-2.20 |
Shareholder Returns Remain a Priority
Macy’s returned $99 million to shareholders in Q3—split between $49 million in dividends and $50 million in buybacks. Year-to-date repurchases stand at $201 million, with over $1.2 billion remaining under its current buyback authorization.
The balance sheet remains healthy: $447 million in cash, $2.4 billion in long-term debt, and no material debt maturities until 2030.
Takeaway: Can Macy’s Sustain the Momentum?
For the first time in more than three years, Macy’s is showing real, broad-based comp sales gains—and is backing it up with higher guidance and robust capital returns. While management acknowledges headwinds such as tariffs, promotional activity, and shifting consumer preferences, their “Bold New Chapter” playbook appears to be gaining traction where it counts.
As the holiday season ramps up and cost controls persist, Macy’s ability to balance innovation with operational discipline will be key. For now, the strategic reinvention and disciplined management are delivering the growth that has eluded department stores for years. Investors may want to watch how comp sales trends unfold into Q4—and whether Bloomingdale’s and the “Reimagine 125” strategy can keep outperforming the sector.
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