Macy’s Posts Strongest Sales Growth in 13 Quarters, Raises 2025 Outlook Amid Strategic Gains
Q3 Sees Robust Comparable Sales—Strategy Execution Fuels Outperformance
Macy’s, Inc. delivered a third quarter to remember, topping both net sales and earnings guidance and showing that its transformation plan—aptly called the "Bold New Chapter"—is resonating with consumers. For the three months ended November 1, 2025, Macy’s posted its highest comparable sales growth in 13 quarters, fueled by innovative store remodels, digital expansion, and standout performance from Bloomingdale’s and Bluemercury.
Performance at a Glance: Key Q3 Metrics
| Metric | Q3 2025 | Q3 2024 | % Change |
|---|---|---|---|
| Net Sales | $4.71B | $4.74B | -0.6% |
| Comparable Sales (Owned) | +2.5% | - | - |
| Comparable Sales (O+L+M)1 | +3.2% | - | - |
| Adjusted Diluted EPS | $0.09 | $0.04 | +125% |
| Adjusted EBITDA | $285M | $273M | +4.4% |
| Gross Margin | 39.4% | 39.6% | -0.2 ppt |
| SG&A (% of Revenue) | 41.2% | 42.1% | -0.9 ppt |
Bloomingdale’s Leads Nameplate Growth, Digital and Store Strategies Pay Off
Among Macy’s brands, Bloomingdale’s stole the spotlight, with net sales climbing 8.6% and comparable sales up 8.8% on an owned basis. This marks the banner’s fifth straight quarter of positive comps—and the highest growth in over three years. The company’s Reimagine 125 stores also outperformed, clocking 2.3% comp growth (owned), reflecting the impact of Macy’s reinvestment in experience-driven store formats. Bluemercury continued its momentum as well, posting 1.1% comp sales growth.
Companywide, other revenue sources like credit card income also surged (+31.7% year-over-year in Q3), supporting total revenue even as total net sales saw a modest decline amid ongoing store closures.
Profitability and Cost Discipline Strengthen Macy’s Foundation
Profitability metrics further illustrate Macy’s improving financial foundation. Adjusted diluted earnings per share more than doubled from a year ago, and both Adjusted EBITDA and core Adjusted EBITDA showed steady expansion. Despite slight gross margin pressure from tariffs, better expense management and benefits from closed stores helped reduce SG&A as a share of revenue by 90 basis points. Asset sales gains declined year-on-year but still contributed $12 million.
| Profitability Metric | Q3 2025 | Q3 2024 |
|---|---|---|
| Adjusted Net Income | $26M | $11M |
| Adjusted Diluted EPS | $0.09 | $0.04 |
| Core Adjusted EBITDA | $273M | $207M |
2025 Guidance Raised—Management Remains Cautiously Optimistic
Citing continued sales momentum, Macy’s management has upgraded its full-year outlook, now expecting net sales of $21.475 to $21.625 billion (up from $21.15–$21.45 billion prior). Guidance for adjusted diluted EPS rises to $2.00–$2.20, a solid lift from the earlier $1.70–$2.05 range. Importantly, Macy’s continues to assume consumer caution in the critical holiday season, reflecting industry-wide retail challenges, but sees flexibility in its business model to adapt.
| 2025 Guidance Metric | As of Dec 3, 2025 | As of Sep 3, 2025 |
|---|---|---|
| Net Sales | $21.475–$21.625B | $21.15–$21.45B |
| Comparable Sales (O+L+M) | Flat to +0.5% | -1.5% to -0.5% |
| Adjusted EBITDA % of Revenue | 7.8–8.0% | 7.4–7.9% |
| Adjusted Diluted EPS | $2.00–$2.20 | $1.70–$2.05 |
Capital Allocation Remains Shareholder Friendly
Macy’s returned $99 million to shareholders in the quarter through dividends and share buybacks, bringing year-to-date repurchases to $201 million. With $1.2 billion left in the buyback authorization and no major debt maturities until 2030, the balance sheet remains flexible.
Key Takeaway: Transformation Shows Real Traction—Focus on Holiday and Beyond
The results show Macy’s making meaningful headway in repositioning its business: comp sales are up, profitability metrics are trending positively, and targeted investments in stores and digital channels are delivering growth—especially in higher-end and experience-led retail like Bloomingdale’s. As the holiday season approaches, investors and shoppers alike will be watching whether this momentum can carry into Q4 and deliver on Macy’s newly raised expectations.
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