Macy’s, Inc. reported third-quarter 2025 net sales of $4.7 billion, slightly down 0.6% from the prior year but ahead of its guidance range. GAAP diluted EPS of $0.04 and adjusted diluted EPS of $0.09 both came in above guidance, supported by better-than-expected sales, gross margin, and SG&A discipline.
Third-quarter comparable sales for Macy’s, Inc. rose 2.5% on an owned basis and 3.2% on an owned-plus-licensed-plus-marketplace basis, marking the strongest comp growth in 13 quarters and signaling clear traction in its Bold New Chapter strategy. The company’s go-forward business delivered 2.7% owned and 3.4% O+L+M comparable sales growth, highlighting the impact of store rationalization and investment in higher-performing locations.
Bold New Chapter and Reimagine 125 drive the turnaround
Macy’s, Inc. said its go-forward business showed its second consecutive quarter of comparable sales growth, with Reimagine 125 locations again outperforming the broader Macy’s fleet. Reimagined stores delivered 2.3% comparable sales growth on an owned basis and 2.7% on an owned-plus-licensed basis, underscoring the value of smaller, more productive formats with enhanced omni capabilities.
Across the total Macy’s nameplate, net sales, including store closures, declined 2.3%, reflecting the impact of the closure program, but comparable sales still increased 1.4% on an owned basis and 2% on an O+L+M basis. For the Macy’s go-forward business specifically, comps improved to 1.7% owned and 2.3% O+L+M growth, suggesting that the portfolio mix is becoming more profitable and better aligned with shopper demand.
Tony Spring, chairman and chief executive officer of Macy’s, Inc., said, “Our third quarter sales were the strongest in 13 quarters, reflecting the acceleration of our Bold New Chapter strategy and demonstrating that the meaningful enterprise-wide changes we’ve made are resonating with customers. As we enter the holiday season, we are well-positioned with compelling new merchandise and an omni-channel customer experience that delivers both inspiration and value. With a strategy rooted in hospitality, our teams are focused on driving long-term, profitable growth.”
Bloomingdale’s and Bluemercury outpace the core banner
Within the portfolio, Bloomingdale’s delivered standout results, with net sales up 8.6% and comparable sales up 8.8% on an owned basis and 9.0% on an O+L+M basis, marking its fifth consecutive quarter of comp growth. Luxury and premium positioning continue to be a bright spot, reinforcing Macy’s, Inc.’s strategy of balancing off-price, mid-range, and luxury tiers.
Beauty chain Bluemercury also posted growth, with net sales up
3.8% and comparable sales rising 1.1% on an owned basis. For the go-forward business over the 39 weeks ended November 1, 2025, Bloomingdale’s comps were up 5.1% owned and 6.2% O+L+M, while Bluemercury increased 1.7% on an owned basis. These gains suggest continued strength in beauty, contemporary, and luxury categories as key traffic and margin drivers.
Margins, inventory and balance sheet discipline
Gross margin for Macy’s, Inc. in the quarter came in at a 39.4% rate, down 20 basis points year over year, primarily due to a 50 basis point tariff impact that was partially offset by mitigation efforts and healthy merchandise sell-through. Selling, general, and administrative expenses were $2 billion, down $40 million, and represented 41.2% of total revenue, an improvement of 90 basis points.
Merchandise inventories increased 0.7% year over year, largely reflecting tariff-related cost pressure but remaining in line with internal plans. Macy’s, Inc. ended the quarter with $447 million in cash and cash equivalents and $2 billion of available borrowing capacity, while total debt stood at $2.4 billion with no material long-term maturities until 2030. Adjusted EBITDA reached $285 million, or 5.8% of total revenue, and Core Adjusted EBITDA was $273 million, or 5.6%, improving meaningfully versus the prior year’s core EBITDA margin.
Shareholder returns and updated 2025 guidance
In the third quarter, Macy’s, Inc. returned approximately $99 million to shareholders, including $49 million in cash dividends and $50 million in share repurchases. Year-to-date, the company has repurchased
15.4 million shares for $201 million, with about $1.2 billion remaining under its $2 billion share repurchase authorization. The board declared a regular quarterly dividend of 18.24 U.S. cents per share, payable January 2, 2026, to shareholders of record on December 15, 2025.
For the full-year 2025, Macy’s, Inc. raised its outlook for net sales and adjusted diluted EPS, while still assuming a more “choiceful” consumer in the fourth quarter and stable tariff conditions. The company now expects full-year Core Adjusted EBITDA as a percent of total revenue in the range of 7.5% to 7.7%, slightly tightening the upper end from the previously communicated range. Management reiterated that most savings from the Bold New Chapter strategy will be reinvested to support long-term sales growth across stores, digital, and its portfolio of banners.
