Macy’s forecasts flat FY26 performance following lower FY25 sales

The company expects net sales to range between $21.4bn and $21.65bn in FY26, compared to $21.8bn for FY25.
Guidance for comparable sales reflects an anticipated change between a decline of 0.5% and growth of 0.5%, indicating limited growth expectations.
Macy’s expects macroeconomic and geopolitical factors to influence discretionary spending, with tariffs having a greater impact in the first half of the year and the most significant effect anticipated in the first quarter.
Key metrics from fiscal 2025
During the fiscal year ending 31 January 2026, Macy’s net sales dropped 2.4% from the previous year, as the continued reduction of non-go-forward locations weighed on overall results.
Despite the decrease, comparable sales increased by 1.5%, with growth recorded at Macy’s Reimagine 125 locations, Bloomingdale’s, Bluemercury and digital channels, which partially offset declines at closed stores.
Within its go-forward business operations, comparable sales were up 1.7%. By nameplate, Macy’s saw net sales decrease by 3.8%, though comparable sales edged up by 0.4%.
The Reimagine 125 locations posted a 1% increase in comparable sales. Bloomingdale’s achieved a 6.3% rise in net sales and a 7.4% increase in comparable sales, while Bluemercury reported net sales growth of 2.6% and comparable sales up by 1.6%.
Macy's says it plans to expand its Reimagine strategic initiative to 75 additional stores, creating "Reimagine 200" for 2026.
Macy’s gross margin rate for fiscal 2025 was reported at 38.0%, a decline of 40 basis points mainly due to tariff effects and markdowns on early Spring merchandise to manage inventory levels.
Selling, general and administrative (SG&A) expenses fell by $90m to $8.2bn as a result of cost containment initiatives and savings from location closures.
The company’s net income stood at $642m, representing 2.8% of total revenue, which translates to diluted earnings per share (EPS) of $2.32.
Overall performance in fourth quarter FY25
In the fourth quarter, Macy’s posted net sales of $7.6bn, a decrease of 1.7%, with positive comparable sales across all nameplates at 1.8%.
The quarterly gross margin was 35.2%, declining by 50 basis points, mainly due to an estimated 60 basis point impact from tariffs.
The company’s net income totalled $507m in Q4 FY25, with adjusted diluted earnings per share (EPS) of $1.67.
Macy’s chairman and CEO Tony Spring said: “At Macy’s, we are offering more relevant brands, stronger storytelling and investing in our colleagues so we can better serve the customer. Bloomingdale’s exceptional performance underscores its ability to elevate the customer experience and capture demand across premium contemporary to luxury businesses.”