Macy’s (M) posted better-than-expected fourth quarter earnings results as the department store chain heads into the third year of its turnaround strategy, called Bold New Chapter.
Adjusted earnings per share for the holiday quarter came in at $1.84, above the $1.54 the Street estimated, according to Bloomberg. Revenue came in at $7.6 billion, just above the $7.5 billion the Street was looking for.
The stock rose nearly 7% in premarket trading
Overall, same-store sales increased 1.8%, compared to 0.12% decline the Street forecast. Comparable sales grew by 2% for stores that Macy’s plans to keep open — those it invested in with new merchandise and more staff.
Same-store sales for its luxury business, Bloomingdale’s, grew nearly 10% during the quarter, which CEO Tony Spring said “underscores its ability to elevate the customer experience and capture demand across premium contemporary to luxury businesses” in the release. Wall Street analysts only expected a 2.5% pop.
Spring added, “At Macy’s, we are offering more relevant brands, stronger storytelling and investing in our colleagues so we can better serve the customer … looking to 2026 and beyond, we are ready to build on our progress.”
The company beat all key metrics, including earnings, revenue, and same-store sales growth, for its fiscal 2025 results.
For the upcoming fiscal year, it expects adjusted earnings to be in the range of $1.90 to $2.10, below the $2.21 the Street expected. That’s alongside revenue of $21.4 billion to $21.65 billion, which was above Wall Street’s predicted outlook of $21.1 billion.
Meanwhile, same-store sales are expected to range from a 0.5% decline to a 0.5% increase. The Street was looking for a 0.5% increase for this year.