- Macy’s increased its full-year adjusted EPS forecast to $2.00 – $2.20, up from the previous expectation of $1.70 – $2.05.
- The estimated net sales for the year are now between $21.48 billion and $21.63 billion, with earlier forecasts ranging from $21.15 billion to $21.45 billion.
- For the third quarter, Macy’s adjusted EPS was $0.09, surpassing both the previous year’s $0.04 and the expected loss of $0.14 per share.
- Quarterly total revenue reached $4.91 billion, exceeding the estimated $4.75 billion.
- Net sales were recorded at $4.71 billion, slightly down 0.6% year-over-year but above the projected $4.56 billion.
- Gross margin was slightly reduced to 39.4% from 39.6% year-over-year, still better than the estimated 39.1%.
- Inventory levels rose by 0.7% year-over-year to $6.30 billion, higher than the expected $5.35 billion.
- SG&A expenses were $2.02 billion, a decrease from $2.06 billion last year, aligning closely with the $2 billion projection.
- Owned basis comparable sales increased by 2.5%, reversing last year’s -2.4%, and outperforming the expected -1.03%.
- Owned plus licensed comparable sales went up by 3.2%, far surpassing the estimate of 0.56%.
- The reduction in gross margin was attributed to a 50 basis point tariff impact, which was more favorable than expected due to effective mitigation strategies.
- Macy’s continues to focus on its “Bold New Chapter” strategy, committing to reinvest savings to promote long-term sales growth.
- Full-year comparable owned-plus-licensed-plus-marketplace sales are anticipated to remain flat or rise by up to 0.5%, compared to the earlier forecasted decline of -1.5% to -0.5%.
- The projected full-year adjusted EBITDA is now 7.8%-8% of total revenue, revised from the prior 7.4%-7.9% forecast.
Macy’s Inc on Smartkarma
Analysts on Smartkarma, such as Baptista Research, are closely following Macy’s Inc. The latest research reports highlight Macy’s financial performance turning a corner with improved sales figures and strategic advancements. Macy’s reported a 1.9% growth in comparable sales, its strongest performance in 12 quarters, led by brands like Bloomingdale’s and Bluemercury that showed significant sales momentum. Baptista Research notes Macy’s CEO Tony Spring’s role in this resurgence, implementing a customer-centric strategy (*Bold New Chapter*) that has positively impacted Macy’s Inc.
Furthermore, Macy’s strategic initiatives, including a diverse channel strategy and bold reinvestment strategies, are setting the stage for an omnichannel comeback. Despite challenges in the retail environment, Macy’s first-quarter 2025 financial results exceeded expectations, with net sales surpassing forecasts and comparable sales showing a smaller decline than anticipated. Analyst sentiment, leaning bullish, reflects optimism surrounding Macy’s recent performance and strategic direction under the leadership of CEO Tony Spring.
A look at Macy’s Inc Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 4 | |
| Dividend | 4 | |
| Growth | 2 | |
| Resilience | 2 | |
| Momentum | 5 | |
| OVERALL SMART SCORE | 3.4 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Investors looking at the long-term outlook for Macy’s Inc can take note of its Smartkarma Smart Scores. With solid scores of 4 in both Value and Dividend, Macy’s is considered favorable in terms of its financial stability and dividend payouts. However, the company falls short in Growth and Resilience, with scores of 2 indicating areas where improvements may be needed. On a positive note, Macy’s Momentum score of 5 suggests strong market performance and investor interest.
Overall, Macy’s Inc, a department store chain in the United States offering a wide range of merchandise through various channels, appears to be an attractive investment option for those seeking value and dividend returns. While there may be room for growth and resilience enhancements, the company’s momentum in the market is a promising sign for its future performance.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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