During the 13 weeks to 1 November 2025, Macy’s net sales were $4.7bn, reflecting a 0.6% decline compared to the same period last year.
On the earnings call, Tom Edwards, chief operating officer and chief financial officer, stated that the decline entirely resulted from the closure of 64 non-Go-Forward stores at the end of 2024.
The company’s comparable sales increased by 2.5% on an owned basis and 3.2% on an owned-plus-licensed-plus-marketplace (O+L+M) basis, with all brands showing positive comparable sales.
Bloomingdale’s recorded an 8.6% increase in net sales, while Bluemercury saw a 3.8% rise. Macy’s nameplate reported a 2.3% decrease in net sales due to store closures, but achieved a 1.4% increase in comparable sales on an owned basis and a 2.0% increase on an O+L+M basis.
Macy’s chairman and CEO Tony Spring 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.”
Key performance figures for Macy’s Q3
The company’s gross margin rate declined by 20 basis points to 39.4% over the quarter, primarily due to a 50 basis-point impact from tariffs, which the company stated was better than anticipated following mitigation efforts.
For the quarter, Macy’s posted net income of $11m, representing 0.2% of total revenue, and adjusted net income of $26m or 0.5% of total revenue. In the comparable quarter last year, GAAP net income was $28m and adjusted net income was $11m.
The company’s diluted earnings per share were $0.04, down from $0.10 in the same period last year.
Selling, general and administrative expenses totalled $2bn, a reduction of $40m year-on-year, attributed to benefits from closed locations and ongoing cost containment offset by investments in core areas.
Macy’s FY25 and fourth quarter outlook
Looking ahead, Macy’s revised its annual guidance upwards for both net sales and adjusted diluted earnings per share.
Updated forecasts as of December indicate projected net sales between $21.4bn and $21.6bn for the full year, compared with the previous guidance of $21.1bn to $21.4bn.
The company anticipates comparable O+L+M sales expected to be flat or increase by up to 0.5% relative to 2024.
In the fourth quarter, Macy’s expects net sales in the range of $7.3bn to $7.5bn.
“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,” Tony Spring added.
