Shares of Macy’s Inc. (NYSE:M) surged about 9% in premarket trading on Wednesday after the department store chain reported fourth-quarter results that topped Wall Street forecasts and issued a revenue outlook that exceeded analyst expectations, even as tariff pressures remain a concern.
The retailer reported adjusted earnings of $1.67 per share for the fourth quarter, beating the consensus estimate of $1.56. Revenue totaled $7.6 billion, ahead of expectations for $7.46 billion, although it was down 1.7% compared with the same period a year earlier. Comparable sales increased 1.8%, supported by strong performance across the company’s brands, with Bloomingdale’s posting its best holiday season on record as comparable sales climbed 9.9%.
Looking ahead, Macy’s expects fiscal 2026 revenue to range between $21.4 billion and $21.65 billion. The midpoint of $21.53 billion comes in above the analyst consensus forecast of $21.11 billion. However, the company’s adjusted earnings guidance of $1.90 to $2.10 per share, with a midpoint of $2.00, fell short of the $2.21 estimate from analysts.
“As we wrap up year two of the Bold New Chapter, I’m pleased with the growth and progress we’re making against our strategic priorities,” said Tony Spring, chairman and chief executive officer of Macy’s, Inc.
For the full fiscal year 2025, Macy’s delivered adjusted earnings per share of $2.32, exceeding its earlier guidance range of $2.00 to $2.20. Comparable sales rose 1.5% over the year, marking a return to growth. The company’s continuing operations, which exclude stores scheduled to close, recorded comparable sales growth of 1.7%.
Gross margin slipped 50 basis points to 35.2% in the fourth quarter, mainly reflecting a 60-basis-point impact from tariffs. During fiscal 2025, Macy’s generated $1.4 billion in operating cash flow and returned $448 million to shareholders through dividends and share buybacks.