Macy’s reported mixed results for its fiscal fourth quarter on March 6, 2025, as the company navigates a turnaround under CEO Tony Spring. Comparable sales fell by 1.1% during the holiday quarter, although online marketplace sales and select store locations showed positive growth, indicating potential recovery signs.
- Macy's mixed quarterly results prompt investor caution.
- Comparable sales down 1.1% during holiday quarter.
- "First 50" locations show positive sales growth.
- Fiscal 2025 earnings expectations lower than anticipated.
- Activist investor pressures Macy's for strategic changes.
- Share buybacks planned under $1.4 billion authorization.
Macy’s performance in the fourth quarter highlighted ongoing challenges as well as some positive Trends. The company reported a net income of $342 million, or $1.21 per share, compared to a loss of $128 million a year prior. Revenue declined to $7.77 billion, down approximately 4% from $8.12 billion, influenced by an extra selling week in the previous year. Key metrics included:
- Earnings per share: $1.80 adjusted vs. $1.53 expected
- Revenue: $7.77 billion vs. $7.87 billion expected
Despite the overall decline, Macy’s saw positive results in its Bloomingdale’s and Blue Mercury brands, which reported increases in comparable sales of 4.8% and 6.2%, respectively. The company’s flagship Macy’s stores, however, lagged behind with a 1.9% drop in comparable sales. CEO Spring’s turnaround strategy includes closing 150 underperforming stores while investing in 50 locations that are receiving enhanced resources and staffing. These targeted stores have shown improved performance, suggesting that the strategy may be effective over time.
Looking ahead, Macy’s forecasts adjusted earnings per share for fiscal 2025 between $2.05 and $2.25, which falls short of Wall Street’s expectations of $2.31 per share. The company also plans to resume share buybacks under its $1.4 billion repurchase authorization, contingent on market conditions. As Macy’s navigates these changes, the involvement of activist investors like Barington Capital raises questions about the future direction of the company and its real estate assets.
In summary, Macy’s mixed fourth-quarter results reflect both challenges and opportunities as the company implements its turnaround strategy. While some areas show promise, the overall performance indicates that significant work remains for Macy’s to regain investor confidence.
