Macy’s Inc. Signals ‘Inflection Point’ as Bold New Chapter Strategy Delivers Positive Comp Sales

Macy’s Q4 2025 Earnings: The Numbers vs. Guidance

Macy’s Inc. has officially entered what CEO Tony Spring calls an “inflection point,” reporting fourth-quarter and full-year 2025 results that exceeded expectations and, crucially, returned the legacy retailer to positive comparable sales growth.

There was a sigh of relief on Wall Street, and shares of the famed retailer rose. The results reflect a business landscape where retailers who are laser-focused on their core strengths while endlessly working on improving store-level performance can take market share from competitors. For Macy’s, it also helps that Saks Global stumbled into bankruptcy.

The results, discussed in the company’s March 18 earnings call, suggest that the “Bold New Chapter” strategy — a multi-year turnaround plan centered on store fleet optimization and luxury acceleration — is beginning to take hold despite a volatile macroeconomic backdrop and the looming shadow of international tariffs.

“As we look back on 2025, we achieved several major milestones,” Spring said on the earnings call. “First, we returned to positive comparable sales for total Macy’s Inc. and Macy’s nameplate, marking an important inflection point. Second, we achieved better-than-expected top line and bottom line results in every quarter, demonstrating strong and consistent execution.”

Spring said third, the retailer delivered adjusted diluted EPS “well above our most recent guidance. Results were also above our initial guidance despite the unanticipated impact of tariffs and lower-than-expected asset sale gains.”

Spring also noted that the retailer’s Thanksgiving Day parade saw a record 34 million-plus viewers while generating 3 billion earned social media impressions, which is up about 30% over the 2024 event. “We leveraged the power of the parade into our retail offerings,” he said. “Holiday destination categories, including fragrances, jewelry and handbags outperformed. Other highlights included women’s contemporary, denim, dresses and children”s. At Bloomingdale’s, our Happy Together campaign generated roughly 15 billion unique impressions per month in earned media for November and December.”

But there were other standouts during the fourth quarter. Spring said company’s Burberry and Bloomingdale’s nameplates forged partnerships that “generated buzz through its in-store pop-ups and exclusive products. While almost every category had positive comps in the quarter, standouts included fragrances, women’s contemporary, designer apparel and fine jewelry.”

The Numbers: Beating the Street

Macy’s outperformed its own guidance across nearly every key metric for Q4 2025:

• Net Sales: $7.6 billion (Exceeding the $7.35B to $7.5B guidance).
• Adjusted Diluted EPS: $1.67 (Significantly beating the projected $1.35 to $1.55).
• Comparable Sales: Up 1.8% for the enterprise, a massive swing from the initial guidance of “down 2.5% to flat.”

The star of the portfolio remains Bloomingdale’s, which posted an impressive 9.9% comparable sales growth in Q4, marking its best holiday season on record.

Strategy Update: The “Reimagined” Fleet

A core component of the Macy’s turnaround is the “Reimagined 125,” which is a group of high-performing stores receiving increased staffing, better visual merchandising, and localized assortments.

• Expansion: Encouraged by 1% comp growth in these locations, Macy’s has expanded the initiative to an additional 75 stores, creating the “Reimagine 200.”
• Concentration: This group now accounts for roughly 75% of Macy’s go-forward store sales, signaling a pivot away from underperforming mall locations toward a concentrated, high-touch “go-forward” fleet of approximately 350 stores.
• Closure Timeline: CFO Tom Edwards noted that while the company still intends to close 65 additional underproductive stores, it will be “flexible on timing” through 2028 to maximize real estate value.

Luxury as a Growth Engine

While the Macy’s nameplate is stabilizing (0.6% annual comp growth), the company is leaning heavily into its luxury arms, Bloomingdale’s and Bluemercury.

• New Brands: Curation is the new watchword, with the addition of “it-brands” such as Toteme, Christian Louboutin, and Skims.
• Small-Format Growth: Management hinted at significant white space for small-format Bloomingdale’s stores and outlets, particularly in the 36 of the top 50 U.S. markets where the nameplate currently has no presence.

Headwinds: The Tariff “Tax” and Prudent Guidance

Despite the celebratory tone, the 2026 outlook remains cautious. Macy’s is navigating what leadership describes as a “prudent” path due to:

• Tariff Pressures: Tariffs are expected to hit gross margins by 20 to 30 basis points in 2026, representing a roughly $0.10 to $0.20 impact on EPS.
• Consumer Bifurcation: Spring noted that while middle- and upper-income tiers remain resilient, lower-income shoppers are becoming increasingly “choiceful” with discretionary spend.
• 2026 Forecast: The company expects net sales between $21.4B and $21.65B, with adjusted EPS of $1.90 to $2.10 — a slight step back from 2025’s $2.32, reflecting the absence of asset sale gains in the new non-GAAP reporting and the ongoing cost of investments.

The Bottom Line: Macy’s has successfully stopped the bleeding. By focusing on its “go-forward” stores and the high-margin luxury sector, the retailer is proving it can still generate excitement. However, 2026 will be the ultimate test of whether “celebration” marketing can outweigh the gravity of inflation