M Earnings: Macy’s Stock Jumps on Q1 Results

Macy’s (M) stock jumped on Wednesday after the retailer posted its Fiscal Q1 2025 earnings report. That happened thanks to its adjusted earnings per share of 16 cents, compared to Wall Street’s estimate of 15 cents. However, it represents a 40.7% drop year-over-year from 27 cents.

The good news continued for Macy’s stockholders with Q1 2025 revenue of $4.6 billion surpassing analysts’ estimate of $4.42 billion. Even so, the company’s revenue dropped 5.1% year-over-year from $4.85 billion. This was fueled by 2% decrease in comparable sales and a 6.5% drop in Macy’s net sales, while being offset by a 2.6% increase in Bloomingdale’s net sales and Bluemercury net sales growth of 0.8%.

M stock was up 1.33% in pre-market trading, following a 4.06% rally yesterday. Despite this, the stock remains down 27.9% year-to-date.

Macy’s 2025 Guidance

Macy’s updated its Fiscal 2025 guidance in its Q1 earnings report. The company lowered its adjusted EPS outlook from $2.05 to $2.25 to the new $1.60 to $2.00 range. With a midpoint of $1.80, the company’s guidance doesn’t look good next to Wall Street’s adjusted EPS estimate of $1.92.

Macy’s also lowered its Adjusted EBITDA as a percent of total revenue to between 7.4% and 7.9% from 8.4% to 8.6% and its Core Adjusted EBITDA as a percent of total revenue to a range of 7% to 7.5% from 8% to 8.2%.

What didn’t change was Macy’s 2025 revenue guidance of $21 billion to $21.4 billion. At a midpoint of $21.2 billion, that should see the company beat analysts’ revenue estimate of $21.03 billion. KPI data shows that Macy’s revenue has been recovering recently despite market pressures.

Is Macy’s Stock a Buy, Sell, or Hold?

Turning to Wall Street, the analysts’ consensus rating for Macy’s is Hold, based on one Buy, 10 Hold, and a single Sell rating over the past three months. With that comes an average M stock price target of $12, representing a potential 0.33% downside for the shares. These ratings and price targets will likely change as analysts update their coverage after today’s earnings.

See more Macy’s stock analyst ratings