We're encouraged by recent results, which reflect the accelerating momentum of our Bold New Chapter strategy. The fundamental enterprise-wide changes we are making are resonating with our customers.
— Tony Spring
03Detailed Report
0JXD.L
Company 0JXD.L
Period
Q3 2025
CurrencyUSD
Report TypeQuarterly Earnings
GeneratedJun 18, 2026
Swipe to view all report sections
Executive Summary
Macy’s, Inc. delivered a solid QQ3 2025 performance driven by the Bold New Chapter strategy, with broad-based improvements across nameplates and continued emphasis on omnichannel execution. Reported net sales were $4.913 billion for the quarter, with a +3.2% comparable sales (comps) and go-forward comps at 3.4%, marking the strongest topline momentum in quarters and highlighting the mass-market appeal of the Go-Forward program alongside Bloomingdale’s luxury momentum. Gross margin stood at 39.4% ($1.858 billion gross profit), aided by mix and robust pricing, though tariff headwinds modestly constrained margin expansion. Core adjusted EBITDA reached $273 million (5.6% of revenue), ahead of guidance, with adjusted EBITDA at $285 million (5.8%). Despite a net income of only $4 million for the quarter, earnings per share (EPS) excluding adjustments came in at $0.09, well above the guidance range. Inventories were modestly higher (+0.7%), positioning the group for the holiday peak. The quarter also featured meaningful operating cash flow progress (YTD OCF of $247 million; free cash flow of -$183 million) and continued capital discipline (capex $525 million; $95 million monetization proceeds; $201 million in buybacks and $149 million in dividends). Management credits stronger results to the three-pillar Bold New Chapter strategy: strengthen and reimagine Macy’s, accelerate and differentiate luxury (Bloomingdale’s and Bluemercury), and simplify and modernize end-to-end operations (notably the China Grove DC). Guidance for the fourth quarter implies a net sales range of $7.35–$7.50 billion and a full-year net sales target of roughly $21.5–$21.6 billion, with gross margin of 37.7–37.9% and core adjusted EBITDA of 7.5–7.7% of revenue. The company also disclosed a lower asset sale gain outlook and maintained a tariff headwind assumption (40–50 basis points) embedded in full-year earnings accretion. Investment implications center on continued top-line momentum from Go-Forward, expanding luxury penetration, and the company’s ability to translate improved traffic and higher average ticket into durable margin and cash-flow gains, even as headline store closures reduce legacy revenue base. Key risks include tariff volatility, macro consumer softness, and execution risk across a multifaceted store and digital ecosystem.
Key Performance Indicators
Revenue
Decreasing
4.91B
QoQ: -1.72% | YoY: -38.64%
Gross Profit
Decreasing
1.86B
37.82% margin
QoQ: -11.48% | YoY: -38.40%
Operating Income
Decreasing
42.00M
QoQ: -72.90% | YoY: -91.58%
Net Income
Decreasing
4.00M
QoQ: -95.40% | YoY: -98.83%
EPS
Decreasing
0.04
QoQ: -87.50% | YoY: -96.75%
Revenue Trend
Margin Analysis
Financial Highlights
Revenue and profitability snapshot (USD):
- Net sales (Q3 2025): $4.913 billion; YoY change: -38.6%; QoQ change: -1.7%. Excluding planned store closures, sales grew ~2.9% YoY.
- Gross profit: $1.858 billion; gross margin 37.8% (0.3782). Adjusted gross margin would have been ~30 bps higher excluding a ~50 bp tariff headwind.
- Operating income: $42.0 million; operating margin ~0.85%.
- EBITDA: $220.0 million; EBITDA margin ~4.48%. Core adjusted EBITDA (EBITDA excluding asset sale gains): $273 million (5.6% of revenue); reported EBITDA including asset sale gains: $285 million (5.8%).
- Net income: $4.0 million; net income margin ~0.08%; EPS (diluted): $0.04.
- SG&A and operating expenses: Selling, General & Administrative expenses reported as $2.024 billion; SG&A as a percentage of revenue ~41.2%, down 90 bps YoY due to closed stores and disciplined cost management.
- Inventory: up 0.7% YoY; unit inventory declined as noted (favorable for holiday readiness).
- Cash flow and capital allocation (YTD): Operating cash flow $247 million; free cash flow (FCF) -$183 million; capital expenditures $525 million; monetization proceeds $95 million; dividends paid $149 million; share repurchases $201 million; cash balance end of quarter $447 million.
- Guidance highlights (FY2025): Q4 net sales guidance of ~$7.35–$7.50 billion; full-year net sales guidance ~$21.475–$21.625 billion. Gross margin 37.7–37.9%; asset sale gains ~+$60–$65 million (vs prior ~$90–$144 million). Core adjusted EBITDA guidance of 7.5–7.7% of revenue; interest expense about $100 million. Adjusted EPS guidance raised to $2.00–$2.20. Tariff headwind now anticipated at ~40–50 bps for gross margin, down from previous expectations.
- Store count and programmatic actions: 64 store closures completed in the prior year; Macy’s continues to target a total of ~150 closures over a 3-year window, with formal announcements expected at year-end. Balance sheet described as healthy with ample liquidity and no maturing obligations highlighted by management.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
4.91B
-38.64%
-1.72%
Gross Profit
1.86B
-38.40%
-11.48%
Operating Income
42.00M
-91.58%
-72.90%
Net Income
4.00M
-98.83%
-95.40%
EPS
0.04
-96.75%
-87.50%
Key Financial Ratios
Management Insights Available for Members
Get exclusive access to management commentary, earnings call quotes, and forward guidance from company leadership.