Macy's, Inc. (NYSE:M) reported better-than-expected results for the fourth quarter on Wednesday, sending its shares about 5% higher.
The retailer posted adjusted earnings per share of $1.67, above the consensus $1.56.
Revenue reached $7.64 billion, down roughly 1.7% year-over-year but exceeding estimates of about $7.5 billion.
Comparable sales grew 1.8%, surpassing guidance, while go-forward comparable sales increased 2%.
Bloomingdale’s reported 9.9% comparable sales growth, Macy’s Reimagine 125 stores contributed 0.9%, and Bluemercury saw 1.3% growth.
For the full year, Macy’s returned to positive comparable sales growth, up 1.5%, and delivered adjusted EPS of $2.32, above the prior guidance range of $2 to $2.20 despite tariff-related pressures.
Macy’s provided fiscal year 2026 guidance of $21.4 billion to $21.65 billion in net sales, adjusted EPS of $1.90 to $2.10, and continued focus on comparable sales growth and shareholder returns.
“As we wrap up year two of the Bold New Chapter, I’m pleased with the growth and progress we’re making against our strategic priorities,” Macy’s CEO Tony Spring said.
“Bloomingdale’s exceptional performance underscores its ability to elevate the customer experience. Looking to 2026 and beyond, we are ready to build on our progress.”
Jefferies analysts saw the results as “a strong end to the year.” Net sales, adjusted EPS, and adjusted EBITDA of $840 million all came in above Street estimates. Inventory was down 1% year-over-year, and credit card revenue rose 17% to $205 million, or 2.7% of sales.
The initial fiscal 2026 guidance was below Street estimates, reflecting accounting changes, store closures, and macroeconomic caution, Jefferies noted. They added that while the company’s Q1 comparable sales guidance is above consensus, EPS is expected below Street estimates, and margins may be pressured as SG&A grows 1% to 2% for the year.
The firm emphasized several points for investors to watch during the earnings call, including monthly Q4 sales performance, Q1 EPS commentary, impact of strategic sales initiatives, store closures, credit card revenue trends, tariff mitigation, promotional activity, SG&A leverage, average unit retail trends, and Bloomingdale’s expansion opportunities.