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Macy's
(NYSE:M)
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Rating:70Outperform
Price Target:
$29.00
▲(48.41% Upside)
Action:Upgraded
Date:06/04/26
The score is driven primarily by improving fundamentals led by strong cash generation and a favorable earnings update with raised full-year guidance. Technicals add support with an uptrend and positive momentum, while valuation is tempered by a negative P/E despite a solid dividend yield.
Positive Factors
Free Cash Flow Strength
Sizable trailing‑12‑month operating and free cash flow, with FCF exceeding net income, supports durable capital allocation: funds reinvestment in omni‑channel initiatives, dividends, buybacks and debt reduction. Strong cash conversion improves financial flexibility across cycles.
Negative Factors
Meaningful Remaining Leverage
Despite deleveraging progress, above‑1x debt‑to‑equity leaves the company exposed to interest costs and limits discretionary capital in a downturn. In a cyclical retail environment, sustained leverage constrains agility on pricing, inventory and capital allocation decisions.
Read all positive and negative factors
Positive Factors
Negative Factors
Free Cash Flow Strength
Sizable trailing‑12‑month operating and free cash flow, with FCF exceeding net income, supports durable capital allocation: funds reinvestment in omni‑channel initiatives, dividends, buybacks and debt reduction. Strong cash conversion improves financial flexibility across cycles.
Read all positive factors
Macy's Key Performance Indicators (KPIs)
Any
Revenue by Type
Analyzes income from different sources such as retail sales, online sales, and services, highlighting diversification and areas of growth or decline.
Analyzes income from different sources such as retail sales, online sales, and services, highlighting diversification and areas of growth or decline.
Data provided by:
The Fly
The FlyMacy's (M) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$6.12B
Dividend Yield3.23%
Average Volume (3M)7.06M
Price to Earnings (P/E)9.4
Beta (1Y)1.14
Revenue Growth-0.35%
EPS Growth25.21%
CountryUS
Employees94,189
SectorConsumer Cyclical
Sector Strength84
IndustryDepartment Stores
Share Statistics
EPS (TTM)2.47
Shares Outstanding263,037,960
10 Day Avg. Volume7,276,299
30 Day Avg. Volume7,057,510
Financial Highlights & Ratios
PEG Ratio0.66
Price to Book (P/B)1.11
Price to Sales (P/S)0.24
P/FCF Ratio5.13
Enterprise Value/Market Cap1.65
Enterprise Value/Revenue0.44
Enterprise Value/Gross Profit1.22
Enterprise Value/Ebitda5.21
Forecast
1Y Price Target
$21.38Price Target Upside9.39% Upside
Rating ConsensusHold
Number of Analyst Covering9
EPS Forecast (FY)2.2
Revenue Forecast (FY)$21.66B
Macy's Business Overview & Revenue Model
Company Description
Macy's, Inc. is a prominent retail enterprise that employs an omnichannel strategy, serving customers through its extensive network of physical department stores, dedicated e-commerce websites, and convenient mobile applications. The company offer...
How the Company Makes Money
Macy’s generates revenue primarily from retail sales of merchandise to consumers across its store network and e-commerce sites. Key revenue streams include: (1) Apparel and accessories sales (e.g., women’s, men’s, and kids’ apparel, handbags, jewe...
Macy's Earnings Call Summary
Earnings Call Date:Jun 03, 2026
(Q1-2026)
| % Change Since: |
Next Earnings Date:Aug 25, 2026
Earnings Call Sentiment Positive
The call communicated broad-based operational momentum and tangible financial improvements: comparable sales growth across all nameplates, record Bloomingdale's performance, positive free cash flow and a raised full-year outlook. Management acknowledged headwinds from tariffs, fuel and select category softness (furniture and plus-size), and noted uncertainty around tariff refunds and macro conditions. On balance, the progress on the Bold New Chapter initiatives, beats to guidance, cash generation and raised guidance outweigh the listed challenges.Positive Updates
Comparable Sales Strength Across Enterprise
Macy's, Inc. delivered 3.0% comparable sales growth (3.1% go-forward), the company's strongest first quarter since 2022; all nameplates and channels were positive (Macy's +1.6%, Bloomingdale's +10.2%, Bluemercury +6.4%).
Negative Updates
Gross Margin Pressure from Tariffs and Fuel
Gross margin was $1.8 billion or 38.9% of net sales (down from 39.2% prior year); management cited an approximate 30 basis-point tariff impact in Q1 and expects tariffs + fuel to negatively impact gross margin by ~20–40 bps in Q2 and ~20–30 bps for the full year.
Read all updates
Q1-2026 Updates
Positive
Negative
Comparable Sales Strength Across Enterprise
Macy's, Inc. delivered 3.0% comparable sales growth (3.1% go-forward), the company's strongest first quarter since 2022; all nameplates and channels were positive (Macy's +1.6%, Bloomingdale's +10.2%, Bluemercury +6.4%).
Read all positive updates
Company Guidance
Macy's said it is raising its full‑year outlook after a stronger‑than‑expected Q1 and provided updated targets: Q2 net sales of about $4.75–4.80B with comparable sales roughly flat to +1%, adjusted EBITDA of 6.9%–7.2% of total revenue and adjusted diluted EPS of $0.29–0.34 (noting tariffs + fuel are expected to subtract roughly $0.03–0.04 of EPS and 20–40 bps of gross margin; FY25 store closures added ~ $35M to Q2 sales). For fiscal 2026 the company now expects net sales of ~$21.5–21.75B (FY25 store closures ~ $145M contribution), comparable sales up ~0.5%–1.2%, other revenue of ~ $920M, gross margin of 38.4%–38.6% (roughly a 20–30 bp negative hit from tariffs and fuel), SG&A up ~1%–2% in dollars (rate roughly in line in Q2 and Q4, higher in Q3), adjusted EBITDA of 7.7%–7.9% of total revenue, interest expense of ~ $100M, and adjusted diluted EPS of $2.00–2.20 (assumes a ~$0.10–0.20 combined tariff + fuel impact); management noted the outlook reflects Q1 results (Q1 net sales $4.7B, +1.8%; comps +3.0%; adjusted EBITDA $290M/5.9% of revenue; adjusted EPS $0.13), that lower tariff assumptions largely offset higher fuel assumptions for a net‑neutral FY impact in the model, and that any tariff refund timing/amounts are excluded from guidance.Macy's Financial Statement Overview
Summary
Income Statement
62
Positive
Balance Sheet
58
Neutral
Cash Flow
74
Positive
| Breakdown | TTM | Jan 2026 | Jan 2025 | Jan 2024 | Jan 2023 | Jan 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 22.72B | 22.62B | 23.01B | 23.87B | 25.45B | 25.40B |
| Gross Profit | 8.30B | 8.27B | 9.27B | 9.64B | 10.10B | 10.44B |
| EBITDA | 1.94B | 1.84B | 1.76B | 1.07B | 2.50B | 3.00B |
| Net Income | 667.00M | 642.00M | 582.00M | 45.00M | 1.15B | 1.43B |
Balance Sheet | ||||||
| Total Assets | 16.31B | 16.24B | 16.40B | 16.25B | 16.87B | 17.59B |
| Cash, Cash Equivalents and Short-Term Investments | 1.29B | 1.25B | 1.31B | 1.03B | 862.00M | 1.71B |
| Total Debt | 5.11B | 5.20B | 5.71B | 5.98B | 6.40B | 6.83B |
| Total Liabilities | 11.47B | 11.38B | 11.85B | 12.21B | 12.78B | 13.97B |
| Stockholders Equity | 4.84B | 4.86B | 4.55B | 4.04B | 4.08B | 3.62B |
Cash Flow | ||||||
| Free Cash Flow | 1.50B | 1.06B | 760.00M | 312.00M | 320.00M | 2.12B |
| Operating Cash Flow | 1.79B | 1.43B | 1.28B | 1.30B | 1.61B | 2.71B |
| Investing Cash Flow | -655.00M | -639.00M | -592.00M | -913.00M | -1.17B | -370.00M |
| Financing Cash Flow | -769.00M | -852.00M | -413.00M | -220.00M | -1.30B | -2.38B |
Macy's Technical Analysis
Neutral
19.54
Price Trends
21.48
Positive
20.22
Positive
20.08
Positive
Market Momentum
0.76
Positive
50.03
Neutral
13.13
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For M, the sentiment is Neutral. The current price of 19.54 is below the 20-day moving average (MA) of 24.00, below the 50-day MA of 21.48, and below the 200-day MA of 20.08, indicating a neutral trend. The MACD of 0.76 indicates Positive momentum. The RSI at 50.03 is Neutral, neither overbought nor oversold. The STOCH value of 13.13 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for M.
Macy's Risk Analysis
Macy's disclosed 29 risk factors in its most recent earnings report. Macy's reported the most risks in the "Production" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Macy's Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $8.67B | 13.17 | 33.85% | 3.99% | 0.62% | 16.26% | |
70 Outperform | $6.12B | 9.41 | 14.44% | 3.23% | -0.35% | 25.21% | |
70 Outperform | $4.01B | 11.55 | 11.42% | ― | -1.83% | -30.18% | |
64 Neutral | $2.06B | 7.45 | 6.83% | 2.33% | -3.80% | 122.79% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% | |
55 Neutral | $3.55B | 22.38 | 3.25% | 0.22% | 3.54% | -55.30% | |
52 Neutral | $6.40B | 25.08 | 15.92% | 1.95% | -0.72% | ― |
* Consumer Cyclical Sector Average
M
Macy's
23.25
11.26
93.83%
DDS
Dillard's
547.21
111.67
25.64%
KSS
Kohl's
18.19
9.44
107.96%
MHO
M/I Homes
156.84
44.93
40.15%
PVH
PVH
75.23
2.34
3.22%
VFC
VF
16.30
4.08
33.33%
Macy's Corporate Events
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Macy’s Shareholders Approve Updated Equity Incentive Plan
Positive
May 18, 2026
At its virtual annual meeting on May 15, 2026, Macy’s, Inc. shareholders approved an amendment and restatement of the company’s 2024 Equity and Incentive Compensation Plan, following prior board approval on March 26, 2026. The revamped...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.