Retailer Macy’s beat earnings and revenue estimates last quarter as it seeks to return to growth, but issued cautious guidance amid tariff impacts.
Revenue was US$7.64 billion in the quarter to 31 January, above LSEG estimates of $7.62 billion but down from $7.77 billion one year ago. Earnings per share were $1.67, passing estimates of $1.53 but dropping from $1.80.
“At Macy’s, we are offering more relevant brands, stronger storytelling and investing in our colleagues so we can better serve the customer,” said CEO Tony Spring.
“Bloomingdale’s exceptional performance underscores its ability to elevate the customer experience and capture demand across premium contemporary to luxury businesses. Looking to 2026 and beyond, we are ready to build on our progress.”
The company’s guidance for fiscal 2026 was largely below its 2025 results. It expects $21.4-21.65 billion in net sales and earnings per share of $1.90-2.10, compared with estimates of $21.42 billion in revenue and $2.17 in earnings per share.
United States tariffs are likely to impact earnings per share by $0.05-0.10, according to Macy’s.
Net sales at its Macy’s locations fell 3.2%, while comparable sales rose 0.4%. Over 80 Macy’s stores have closed as part of its strategy to return to consistent growth, Spring told CNBC, and it hopes to reach 150 closures by 2028.
Bloomingdale’s net sales rose 8.5%, with comparable sales growing 9.9%. Bluemercury net sales climbed 2.5% and comparable sales were up 1.3%.
Operating income was $745 million, increasing from $500 million one year ago.
Macy’s (NYSE: M) shares closed 4.7% higher at $17.72, but dropped 0.2% in after-hours trading. Its market capitalisation is $4.71 billion.
