Macy’s (M) M quarter Financial Results Summary
QuoteReporter
•4 min read
Macy’s, Inc. (M) Q3 2025 Financial Results Summary
Macy’s, Inc. (NYSE: M) released its financial results for the third quarter of 2025 on December 3, 2025, highlighting strong performance metrics and strategic execution.
Third Quarter Highlights
- Net Sales: Achieved $4.7 billion, exceeding the company’s guidance range.
- Comparable Sales Growth:
- Up 2.5% on an owned basis.
- Up 3.2% on a comparable owned-plus-licensed-plus-marketplace (O+L+M) basis, surpassing guidance.
- Earnings:
- GAAP diluted EPS: $0.04.
- Adjusted diluted EPS: $0.09, above the prior guidance range, driven by sales performance and improvements in gross margin and SG&A expenses.
- Performance by Segment:
- Macy’s Reimagine 125 locations: Comparable sales up 2.3% (owned) and 2.7% (O+L).
- Bloomingdale’s: Achieved comparable sales up 8.8% (owned) and 9.0% (O+L+M), marking the highest growth in 13 quarters.
- Bluemercury: Registered a 1.1% increase in comparable sales.
- Shareholder Returns: Approximately $99 million returned to shareholders:
- $49 million in quarterly cash dividends.
- $50 million in share repurchases (2.8 million shares).
Financial Comparisons (Q3 2025 vs. Q3 2024)
- Net Sales: Decrease of 0.6% from $4.742 billion to $4.7 billion.
- Cost of Sales: Slight decrease, resulting in a gross margin of 39.4%, a decline of 20 basis points.
- SG&A Expenses: Decreased by $40 million to $2.0 billion, with SG&A as a percentage of total revenue dropping 90 basis points to 41.2%.
- Operating Income: Down to $42 million (0.9% of total revenue), compared to $64 million (1.3% of total revenue) in Q3 2024.
- Net Income: Decreased to $11 million (0.2% of total revenue), down from $28 million (0.6% of total revenue).
- Adjusted Net Income: Increased to $26 million (0.5% of total revenue) from $11 million (0.2% of total revenue) in Q3 2024.
Key Operating Metrics
- EBITDA: Adjusted EBITDA stood at $285 million (5.8% of total revenue) compared to $273 million (5.6% of total revenue) in the same quarter last year.
- Comparable Sales:
- Across the company: 2.7% growth on an owned basis and 3.4% growth on an O+L+M basis.
- Store Performance:
- Macy’s net sales down 2.3%, but comparable sales up 1.4% on an owned basis.
- Bloomingdale’s and Bluemercury reported significant increases in sales performance.
Balance Sheet and Liquidity
- Cash and Cash Equivalents: Ended the quarter at $447 million.
- Debt: Total debt of $2.4 billion, no material long-term maturing until 2030.
- Inventories: Increased by 0.7% year-over-year as expected.
Guidance Update for 2025
- Revised Full Year Guidance:
- Net Sales: Expected between $21.475 billion and $21.625 billion.
- Adjusted Diluted EPS: Expected to range from $2.00 to $2.20.
- Consumer behavior anticipated to remain selective for the fourth quarter.
Quarterly Dividend
- Declared a quarterly dividend of 18.24 cents per share on October 24, 2025, payable on January 2, 2026.
Overall, Macy’s, Inc. showcases a resilient performance in Q3 2025, marking significant achievements in comparable sales driven by strategic transformations and focused investments in digital and store experiences.
| 13 Weeks Ended November 1, 2025 | 13 Weeks Ended November 2, 2024 | |||
|---|---|---|---|---|
| $ | % to Net sales | $ | % to Net sales | |
| Net sales | $4,713 | $4,742 | ||
| Other revenue (Note 2) | 200 | 4.2 % | 161 | 3.4 % |
| Total revenue | $4,913 | $4,903 | ||
| Cost of sales | -2,855 | (60.6 %) | -2,864 | (60.4 %) |
| Selling, general and administrative expenses | -2,024 | (41.2 %) | -2,064 | (42.1 %) |
| Gains on sale of real estate | 12 | 0.2 % | 66 | 1.3 % |
| Impairment, restructuring and other (costs) benefits | -4 | (0.1 %) | 23 | 0.5 % |
| Operating income | 42 | 0.9 % | 64 | 1.3 % |
| Benefit plan income, net | 4 | 4 | ||
| Interest expense, net | -25 | -32 | ||
| Loss on extinguishment of debt | -16 | -1 | ||
| Income before income taxes | 5 | 35 | ||
| Federal, state and local income tax benefit (expense) (Note 3) | 6 | -7 | ||
| Net income | $11 | $28 | ||
| Basic earnings per share | $0.04 | $0.10 | ||
| Diluted earnings per share | $0.04 | $0.10 | ||
| Average common shares: | ||||
| Basic | 267.7 | 278.4 | ||
| Diluted | 274.6 | 281.5 | ||
| End of period common shares outstanding | 264.9 | 277.5 | ||
| Supplemental Financial Measures: | ||||
| Gross Margin (Notes 4) | $1,858 | 39.4 % | $1,878 | 39.6 % |
| Depreciation and amortization expense | $235 | $228 |
| November 1, 2025 | February 1, 2025 | November 2, 2024 | |
|---|---|---|---|
| ASSETS: | |||
| Current Assets: | |||
| Cash and cash equivalents | $447 | $1,306 | $315 |
| Receivables | 187 | 303 | 224 |
| Merchandise inventories | 6,298 | 4,468 | 6,257 |
| Prepaid expenses and other current assets | 433 | 385 | 416 |
| Income taxes receivable | 20 | 17 | 34 |
| Total Current Assets | 7,385 | 6,479 | 7,246 |
| Property and Equipment – net | 4,837 | 5,070 | 5,161 |
| Right of Use Assets | 2,216 | 2,243 | 2,322 |
| Goodwill | 828 | 828 | 828 |
| Other Intangible Assets – net | 421 | 425 | 426 |
| Other Assets | 1,377 | 1,357 | 1,310 |
| Total Assets | $17,064 | $16,402 | $17,293 |
| LIABILITIES AND SHAREHOLDERS’ EQUITY: | |||
| Current Liabilities: | |||
| Short-term debt | $— | $6 | $92 |
| Merchandise accounts payable | 3,436 | 1,893 | 3,344 |
| Accounts payable and accrued liabilities | 2,452 | 2,625 | 2,337 |
| Total Current Liabilities | 5,888 | 4,524 | 5,773 |
| Long-Term Debt | 2,432 | 2,773 | 2,773 |
| Long-Term Lease Liabilities | 2,811 | 2,927 | 2,961 |
| Deferred Income Taxes | 727 | 724 | 712 |
| Other Liabilities | 878 | 902 | 927 |
| Shareholders’ Equity | 4,328 | 4,552 | 4,147 |
| Total Liabilities and Shareholders’ Equity | $17,064 | $16,402 | $17,293 |