Macy’s, Inc. (NYSE: $M) is a publicly traded holding company that operates department stores and is the parent company of brands such as Bluemercury, Bloomingdale’s, and Macy’s. Based in NYC, it is a leading omnichannel retailer that sells clothing, beauty products, home furnishings, and more.
Following the release of its better-than-expected Q3 results, Macy’s shares dipped. Let us take a deep dive into the results.
Macy’s Q3 Results
Macy’s reported net sales of $4.7 billion, beating estimates of $4.56 billion. It also reported an adjusted EPS of $0.09, beating estimates of a $0.13 loss. Comparable sales were up 3.2% on an owned-plus-licensed-plus-marketplace, beating its own forecast.
Other Q3 highlights
Macy’s returned around $99 million to shareholders, comprising $49 million in quarterly dividends and $50 million in share buybacks. Outside of department store revenue, Macy’s Inc. brought in $200 million in other revenue, a 24.2% or $39 million YoY increase. In the other revenue category, credit card net revenue rose 31.7% or $38 million YoY to $158 million. Meanwhile, the Macy’s Media Network saw net revenue remain flat at $42 million.
The gross margin rate came in at 39.4%, a 20-basis point decline, mainly due to a 50-basis point tariff impact. SG&A expenses, meanwhile, came in at $2 billion, a $40 million decline, driven by the closing of Macy’s locations and cost containment efforts.
Macy’s Inc. reported an adjusted net income of $26 million, or 0.5% of total revenue. Last year, the adjusted net income came in at $11 million, representing 0.2% of total revenue. It reported an adjusted EBITDA of $285 million, compared to an adjusted EBITDA of $73 million last year.
Macy’s ended the quarter with $447 million in cash and cash equivalents and $2 billion in borrowing capacity. Its total debt was $2.4 billion at the end of Q3 25.
2025 Full-Year Guidance
Macy’s raised its full-year guidance. However, it remains cautious about Q4 results, warning of the potential impact of tariffs. For the full year, Macy’s now expects revenue of $21.475 billion to $21.625 billion, a slight upgrade from the previous forecast of $21.15 billion to $21.45 billion.
For the fourth quarter, Macy’s expects net sales of $7.35 to $7.5 billion, and comparable sales to remain flat or fall by 2.5%. Full-year adjusted EPS is expected to be $2.00 to $2.20, up from the previous forecast of $1.70 to $2.05.
Market Performance
Following the release of the Q4 results, Macy’s (M) shares declined 1.10% at the close of trading on Wednesday, November 3, 2025, to $22.46. Year to date, $M shares are up 32.66%, while over the past month, the stock is up 12.64%.
Analysts are cautious about the future of Macy’s ($M) stock. They give the stock an overall hold rating. The analysts forecast an average price of $16.61, which is 26.86% downside based on the last closing price. The analysts give a wide range of forecasts for the stock, with a high of $23 and a low of $7.
Is Now The Time To Buy Macy’s ($M)
Macy’s ($M) continues to face challenges that include a decline in sales and profitability. Additionally, it faces a shifting retail landscape, despite its cheap valuation. The long-term prospects are not exciting when it comes to $M shares. It maintains expensive real estate, which places it at a significant disadvantage to online retailers. As such, the overall hold rating could potentially be the best course of action, unless a major shift in its business model is announced.
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