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1. Company Snapshot

1.a. Company Description

Macy's, Inc., an omni-channel retail organization, operates stores, Websites, and mobile applications.The company sells a range of merchandise, such as apparel and accessories for men, women, and children; cosmetics; home furnishings; and other consumer goods.As of January 29, 2022, it operated 725 department stores in the District of Columbia, Puerto Rico, and Guam under the Macy's, Macy's Backstage, Market by Macy's, Bloomingdale's, Bloomingdale's The Outlet, Bloomies, and bluemercury brands.


It also operates in Dubai, the United Arab Emirates, and Al Zahra, Kuwait under the license agreements.The company also operates as a beauty products and spa retailer.The company was formerly known as Federated Department Stores, Inc.


and changed its name to Macy's, Inc.in June 2007.Macy's, Inc.


was founded in 1830 and is based in New York, New York.

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1.b. Last Insights on M

Breaking News: Macy's Inc reported a decline in its recent trading session. The company closed at $21.49 on February 9 2026. Macy's stock experienced a -5.33% move from the previous day. Analysts at various firms have issued recommendations on the stock. Some analysts have recommended a hold while others have a sell rating. Macy's recent earnings release showed mixed results. The company reported revenue of $5.12 billion. Net income was $68 million. The earnings per share was $0.26.

1.c. Company Highlights

2. Macy's Q3 Earnings: A Strong Beat on Sales and Profitability

Macy's reported a robust third-quarter 2025 earnings, with net sales of $4.7 billion, representing a 3.2% comparable sales growth, and adjusted EPS of $0.09, exceeding guidance. The company's net sales decline was entirely due to the closure of 64 non-go-forward stores at the end of last year, which contributed $160 million to sales in the prior year. Excluding this impact, Macy's sales grew 2.9%. Gross margin was 39.4% of net sales, and SG&A expense declined $40 million from last year. The company recognized $12 million in asset sale gains. The actual EPS of $0.09 beat estimates of -$0.13081, indicating a significant positive surprise.

Publication Date: Dec -20

📋 Highlights
  • Strong Sales Growth:: Macy's achieved 3.2% comparable sales growth, driven by 2% growth at Macy's, 9% at Bloomingdale's, and 1.1% at Bluemercury, excluding the impact of 64 closed stores ($160M sales loss YoY).
  • Profit Margin Expansion:: Adjusted EBITDA reached $273M (5.6% of revenue), surpassing guidance of 3.3%-3.7%, while core adjusted EPS of $0.09 beat expectations of a $0.15-$0.20 loss and last year’s $0.04.
  • Operational Efficiency:: SG&A expenses dropped $40M YoY, and capital expenditures fell to $525M (vs. $649M in 2024), alongside $247M operating cash flow and $183M free cash flow year-to-date.
  • Strategic Investments:: The new China Grove distribution center, equipped with automation and AI, aims to enhance delivery speed and reduce costs, supporting Macy’s "Bold New Chapter" strategy for long-term growth.
  • Inventory Discipline:: Inventory grew 0.7% YoY in dollar terms but declined on a unit basis, reflecting effective inventory management and alignment with customer demand trends.

Segment Performance

The company saw growth across all nameplates, with Macy's comparable sales up 2%, Bloomingdale's up 9%, and Bluemercury up 1.1%. Macy's customer base, predominantly middle to upper income, remained resilient and engaged in the third quarter. The company is pleased with the start of the fourth quarter, with November comp trends similar to the third quarter.

Operational Highlights

Macy's is focusing on its holiday campaign, "The Most Wonderful Stories Start Here," which aims to deliver a more personalized approach to customer communication. The company is also investing in its e-commerce capabilities, including the opening of a new China Grove distribution center, which incorporates automation, robotics, and AI into its delivery ecosystem. The recent opening of this new customer fulfillment and store replenishment center is expected to increase speed of delivery and reduce costs.

Guidance and Outlook

For the fourth quarter, the company expects net sales of $7.35 billion to $7.5 billion, comparable sales down 2.5% to flat, and core adjusted EBITDA as a percent of total revenue of 9.4% to 10.1%. Adjusted EPS is expected to be $1.35 to $1.55. The company now expects full-year 2025 net sales of $21.475 billion to $21.625 billion, comparable sales flat to up 0.5%, and core adjusted EBITDA as a percent of total revenue of 7.5% to 7.7%.

Valuation

With a P/E Ratio of 13.35 and an EV/EBITDA of 6.88, Macy's valuation appears reasonable, considering its growth prospects and profitability. The company's strong balance sheet, with ample liquidity, and its commitment to thoughtfully navigating the near term while executing against long-term goals, are positives. Analysts estimate next year's revenue growth at -3.2%, but Macy's is confident in its strategy, with a broad range of assortment, value, promotions, and price points catering to the aspirational customer.

3. NewsRoom

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Macy's (M) Stock Falls Amid Market Uptick: What Investors Need to Know

Feb -09

Source: zacks.com

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Macy's (M) Rises As Market Takes a Dip: Key Facts

Feb -04

Source:

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Top 5 Low Price-to-Sales Stock Picks for Value-Focused Investors

Feb -03

Source: zacks.com

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Macy's Bold New Chapter Execution Accelerates Enterprise-Wide Recovery

Jan -29

Source: zacks.com

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Macy’s Stock Is Up 34%, but One Fund Just Cut $10 Million From the Retail Bet

Jan -29

Source: fool.com

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Macy's (M) Sees a More Significant Dip Than Broader Market: Some Facts to Know

Jan -28

Source: zacks.com

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Nike To Slash Over 700 US Distribution Jobs Amid Automation Push: Report

Jan -27

Source: feeds.benzinga.com

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Macy's Stock: Deep Value Opportunity or Classic Value Trap?​

Jan -26

Source: fool.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.79%)

6. Segments

Women's Accessories, Shoes, Cosmetics, and Fragrances

Expected Growth: 4.78%

Macy's Inc. witnessed 4.78% growth in Women's Accessories, Shoes, Cosmetics, and Fragrances driven by increasing demand for premium and sustainable products, effective marketing strategies, and strategic partnerships. Additionally, the rise of e-commerce, influencer marketing, and experiential retail experiences contributed to the growth.

Men's and Kids'

Expected Growth: 4.83%

Macy's Men's and Kids' segment growth of 4.83% is driven by strategic initiatives such as Backstage off-price expansion, improved merchandise assortment, and enhanced omnichannel capabilities. Additionally, effective marketing campaigns and loyalty programs have contributed to increased customer engagement and retention.

Women's Apparel

Expected Growth: 4.78%

Macy's Women's Apparel segment growth of 4.78% is driven by increasing demand for trendy and affordable fashion, successful marketing campaigns targeting millennials, and strategic partnerships with popular brands. Additionally, the company's focus on omnichannel retailing, improved e-commerce platform, and enhanced in-store experiences are contributing to the growth.

Home/Other

Expected Growth: 4.77%

Macy's Home/Other segment growth of 4.77% is driven by increasing online sales, successful marketing campaigns, and strategic partnerships. Additionally, the company's focus on experiential retail, such as its 'Growth50' initiative, has enhanced customer engagement and driven sales. Furthermore, the segment's product diversification and private label offerings have also contributed to its growth.

7. Detailed Products

Apparel

Macy's offers a wide range of apparel for men, women, and kids, including casual and formal wear, outerwear, and activewear from various brands and private labels.

Home Goods

Macy's sells a variety of home goods, including bedding, kitchenware, dining, and decorative items from popular brands and private labels.

Beauty and Fragrances

Macy's offers a wide range of beauty and fragrance products from popular brands, including skincare, makeup, and perfumes.

Shoes

Macy's sells a vast selection of shoes for men, women, and kids, including boots, sandals, sneakers, and dress shoes from various brands.

Jewelry

Macy's offers a wide range of fine and fashion jewelry, including diamonds, gold, silver, and gemstones from popular brands.

Kitchen and Dining

Macy's sells a variety of kitchen and dining products, including cookware, cutlery, and tableware from popular brands.

Bed and Bath

Macy's offers a wide range of bed and bath products, including bedding, towels, and decorative items from popular brands.

Toys and Games

Macy's sells a variety of toys and games for kids, including educational toys, puzzles, and outdoor toys.

Services

Macy's offers various services, including gift wrapping, alterations, and personal shopping.

8. Macy's, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Macy's faces moderate threat from substitutes as customers have various alternatives for shopping, including online retailers like Amazon, eBay, and other department stores.

Bargaining Power Of Customers

Macy's customers have high bargaining power due to the availability of numerous alternatives, allowing them to easily switch to competitors if they are not satisfied with prices or services.

Bargaining Power Of Suppliers

Macy's has a large number of suppliers, which reduces the bargaining power of individual suppliers, giving Macy's more control over prices and negotiations.

Threat Of New Entrants

The threat of new entrants is low for Macy's due to the high barriers to entry in the retail industry, including significant capital requirements and established relationships with suppliers.

Intensity Of Rivalry

The retail industry is highly competitive, with many established players, leading to intense rivalry among companies like Macy's, Nordstrom, and Kohl's.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 44.79%
Debt Cost 3.95%
Equity Weight 55.21%
Equity Cost 14.89%
WACC 9.99%
Leverage 81.12%

11. Quality Control: Macy's, Inc. passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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Dillard's

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Value: 5.2

Growth: 6.9

Quality: 7.1

Yield: 9.0

Momentum: 8.5

Volatility: 5.0

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Travel + Leisure

A-Score: 6.5/10

Value: 7.6

Growth: 4.7

Quality: 6.0

Yield: 7.0

Momentum: 7.5

Volatility: 6.0

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Macy's

A-Score: 5.4/10

Value: 7.8

Growth: 2.6

Quality: 4.4

Yield: 7.0

Momentum: 7.5

Volatility: 3.0

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Allison Transmission Holdings

A-Score: 5.3/10

Value: 5.4

Growth: 7.4

Quality: 7.4

Yield: 2.0

Momentum: 2.0

Volatility: 7.7

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Nordstrom

A-Score: 5.2/10

Value: 7.4

Growth: 3.8

Quality: 4.2

Yield: 4.0

Momentum: 7.0

Volatility: 5.0

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Kohls

A-Score: 4.8/10

Value: 8.9

Growth: 2.4

Quality: 3.4

Yield: 7.0

Momentum: 6.0

Volatility: 1.3

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

20.99$

Current Price

20.99$

Potential

-0.00%

Expected Cash-Flows