Macy’s (M) Q4 2026 earnings summary

Executive summary

• Achieved positive comparable sales growth for both total and nameplate businesses in FY25, with Q4 and full-year results exceeding guidance and a 1.5% increase in comparable sales year-over-year.

• Delivered adjusted diluted EPS of $2.32 for FY25, surpassing guidance despite tariff impacts and lower asset sale gains.

• Strong execution of "A Bold New Chapter" and Reimagine strategies drove improvements, especially at Bloomingdale's, which led growth.

• Digital sales represent about one-third of annual sales, with ongoing investments in omni-channel and customer experience.

• Expanded transformation plan to 200 Macy's stores by 2026, covering 60% of fleet and 75% of store sales.

Financial highlights

• FY25 net sales were $21.8B, down 2.4% year-over-year, with Q4 net sales of $7.6B and comparable sales up 1.8%.

• FY25 adjusted EBITDA was $1.84B (8.1% margin); Q4 adjusted EBITDA was $840M (10.6% margin).

• FY25 operating cash flow was $1.4B (+11.9%), free cash flow $797M (+17.4%), and year-end cash balance $1.2B.

• Q4 adjusted diluted EPS was $1.67, and full-year adjusted diluted EPS was $2.32.

• Q4 gross margin was 35.2% of net sales, with a 60 bps tariff impact; SG&A expense rate was 29.8% in Q4.

Outlook and guidance

• FY26 net sales expected at $21.4B–$21.65B; comparable sales guidance of -0.5% to +0.5%.

• Gross margin projected at 38.3%–38.6% of net sales, with a 20–30 bps tariff impact.

• Adjusted EBITDA margin expected at 7.7%–7.9%; adjusted diluted EPS guidance of $1.90–$2.10.

• Q1 2026 net sales guidance of $4.575B–$4.625B, with comps up 0.5%–1.5% and adjusted EPS of -$0.01 to +$0.01.

• Guidance reflects a prudent approach amid macroeconomic and geopolitical uncertainties, including higher tariff impacts in H1 2026.