Shares in Macy’s (M) fell over 4% early Wednesday as the omnichannel retailer expects its sales to come in flat by the end of its fiscal year. The New York-based company reported Q3 2025 revenue and earnings per share that exceeded Wall Street’s expectations.
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During the three-month period, Macy’s grew its revenue marginally from $4.90 billion a year ago to $4.91 billion. However, the figure comfortably topped Wall Street’s consensus of $4.55 billion.
Similarly, the retailer’s earnings per share were flat year-over-year. The company earned 4 cents per share, compared to analysts’ expectations of a loss of 13 cents per share.
Macy’s Gives Bearish Sales Outlook
The retailer grew comparable sales across its own inventory, third-party licensed departments inside its stores, and marketplace transactions on its digital platform by 3.2% year-over-year. This was its strongest sales in 13 quarters.
According to Tony Spring, Macy’s chair and CEO, the sales were made possible by “the meaningful enterprise-wide changes” the company made, and that is resonating with customers. Despite this, the retailer’s prediction for its ongoing quarter and the full fiscal year is not very positive.
By the end of the fourth quarter, Macy’s expects sales across all its channels — which it refers to as owned-plus-licensed-plus-marketplace (O+L+M) sales — to remain stable or shrink by 2.5% YoY. Similarly, the retailer expects its full-year comparable sales to be flat or rise about 0.5% higher than a year ago.
In terms of concrete numbers, Macy’s expects net sales between $7.35 billion and $7.5 billion, meaning it could possibly beat the consensus of $7.35 billion. It is, however, important to note that the retailer’s former outlook was more pessimistic.
Macy’s previously anticipated its full-year sales in this category to drop between 1.5% to 0.5% compared to 2024.
Macy’s Raises Full-Year Earnings Outlook
Despite expecting comparable sales to remain largely stable, the retailer remains confident about its full-year revenue and earnings for investors. It projects generating between $21.48 billion and $21.63 billion.
This keeps the range slightly above Wall Street’s estimated $21.31 billion and is an improvement from the retailer’s previous range of $21.15 billion and $21.45 billion.
Similarly, Macy’s expects its full-year adjusted EPS to be between $2 and $2.20 per share. Its upper and lower ends of the range are above the previous value of between $1.70 and $2.05.
Is Macy’s a Good Stock to Invest in?
Wall Street’s mood toward Macy’s is very cautious, as analysts recommend a Hold consensus rating. This is based on one Buy, 10 Holds, and one Sell issued by 12 analysts over the past three months.
Moreover, the average M price target of $16.30 indicates over 27% downside risk from the current trading level.
