CORRECTING and REPLACING Macy’s, Inc. Reports Third Quarter 2025 Results

Macy’s, Inc. net sales and Adjusted diluted EPS exceeded guidance, driven by Bold New Chapter momentum

Macy’s, Inc. delivered its strongest comparable sales¹ growth in 13 quarters

Macy’s go-forward business achieved its second consecutive quarter of comparable sales growth, fueled by Reimagine 125 stores and digital strength

Bloomingdale’s achieved its fifth consecutive quarter of comparable sales growth

In the table below heading "2025 Guidance," column "Guidance as of December 3, 2025," row "Core Adjusted EBITDA as a percent of total revenue": 7.5% to 7.7% (instead of 7.5% to 7.8%).

The updated release reads:

Macy’s, Inc. Reports Third Quarter 2025 Results

Macy’s, Inc. net sales and Adjusted diluted EPS exceeded guidance, driven by Bold New Chapter momentum

Macy’s, Inc. delivered its strongest comparable sales¹ growth in 13 quarters

Macy’s go-forward business achieved its second consecutive quarter of comparable sales growth, fueled by Reimagine 125 stores and digital strength

Bloomingdale’s achieved its fifth consecutive quarter of comparable sales growth

Macy’s, Inc. (NYSE: M) today reported financial results for the third quarter of 2025 and updated its annual guidance.

Third Quarter Highlights

• Macy’s, Inc. achieved net sales of $4.7 billion, exceeding the company’s guidance range.
• Macy’s, Inc. reported comparable sales up 2.5% on an owned basis and up 3.2% on a comparable owned-plus-licensed-plus-marketplace (“O+L+M”) basis, surpassing the company’s guidance range and benefiting from better-than-expected performance across nameplates.
• The company reported GAAP diluted earnings per share (“EPS”) of $0.04; Adjusted diluted EPS was $0.09, above the company’s prior guidance range and driven by better-than-expected net sales, gross margin, and selling, general and administrative expense (“SG&A”).
• Macy’s Reimagine 125 locations achieved comparable sales growth of 2.3% on an owned basis and 2.7% growth on an owned-plus-licensed (“O+L”) basis, continuing to outperform the broader Macy’s nameplate.
• Bloomingdale’s comparable sales were up 8.8% on an owned basis and 9.0% on an O+L+M basis, the highest in 13 quarters.
• Bluemercury reported positive 1.1% comparable sales, achieving another quarter of growth.
• The company returned approximately $99 million to shareholders, consisting of $49 million in quarterly cash dividends and $50 million in share repurchases.

“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,” said Tony Spring, chairman and chief executive officer of Macy’s, Inc. “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.”

Third Quarter Results (comparisons are to the third quarter of 2024)

Macy’s, Inc. net sales, inclusive of store closures, decreased 0.6%² to $4.7 billion, with comparable sales up 2.5% on an owned basis and up 3.2% on an O+L+M basis. Comparable sales reflect positive comparable sales at each of the company’s nameplates.

Macy’s, Inc. go-forward³ business comparable sales were up 2.7% on an owned basis and up 3.4% on an O+L+M basis. By nameplate:

• Macy’s net sales, inclusive of store closures, were down 2.3%³. Comparable sales were up 1.4% on an owned basis and up 2.0% on an O+L+M basis. Macy’s go-forward business comparable sales were up 1.7% on an owned basis and up 2.3% on an O+L+M basis.
  • Reimagine 125 locations comparable sales were up 2.3% on an owned basis and up 2.7% on an O+L basis.
• Bloomingdale’s net sales were up 8.6%. Comparable sales were up 8.8% on an owned basis and up 9.0% on an O+L+M basis.
• Bluemercury net sales were up 3.8%. Comparable sales were up 1.1% on an owned basis.

Other revenue of $200 million increased $39 million, or 24.2%. Within Other revenue:

• Credit card net revenues increased $38 million, or 31.7%, to $158 million, reflecting the health of the portfolio.
• Macy’s Media Network net revenue was flat at $42 million.

Gross margin rate of 39.4% declined 20 basis points. The decline was primarily attributable to a 50 basis point tariff impact, which was better than company expectations reflecting positive response to mitigation actions.

Selling, general and administrative expense of $2.0 billion decreased $40 million, reflecting the net benefit from closed Macy’s locations and continued cost containment efforts, partially offset by ongoing investments in the go-forward business, including Reimagine 125 locations, Bloomingdale’s and digital across nameplates. As a percent of total revenue, SG&A expense decreased 90 basis points to 41.2%.

Asset sale gains were $12 million compared to $66 million. The company remains committed to closing underproductive stores. Its balance sheet strength provides flexibility to take a disciplined approach to transactions to achieve the optimal monetization value.

GAAP net income was $11 million, or 0.2% of total revenue, and Adjusted net income was $26 million, or 0.5% of total revenue. In the third quarter of 2024, net income was $28 million, or 0.6% of total revenue, and Adjusted net income was $11 million, or 0.2% of total revenue.

GAAP and Adjusted diluted EPS were $0.04 and $0.09, respectively. In the third quarter of 2024, GAAP and Adjusted diluted EPS were $0.10 and $0.04, respectively.

Adjusted earnings before interest, taxes, and depreciation and amortization (“EBITDA”) was $285 million, or 5.8% of total revenue, and Core Adjusted EBITDA⁴ was $273 million, or 5.6% of total revenue. In the third quarter of 2024, Adjusted EBITDA was $273 million, or 5.6% of total revenue, and Core Adjusted EBITDA was $207 million, or 4.2% of total revenue.

Balance Sheet and Liquidity

Merchandise inventories increased 0.7% year-over-year, in-line with expectations, reflecting tariff-related cost increases.

The company ended the third quarter of 2025 with cash and cash equivalents of $447 million and had $2.0 billion of available borrowing capacity under its asset-based credit facility.

As of the end of the third quarter of 2025, total debt was $2.4 billion. The company has no material long-term debt maturities until 2030.

Shareholder Returns

Through its quarterly dividend, the company returned $49 million in cash to shareholders in the third quarter of 2025, and $149 million in the year-to-date period. Additionally, on October 24, 2025, Macy’s, Inc.’s board of directors declared a regular quarterly dividend of 18.24 cents per share on Macy’s, Inc.’s common stock, payable on January 2, 2026 to shareholders of record at the close of business on December 15, 2025.

During the third quarter of 2025, the company repurchased 2.8 million of its shares for $50 million, bringing total year-to-date repurchases to 15.4 million shares for $201 million. The company had approximately $1.2 billion remaining under its $2.0 billion share repurchase authorization as of the end of the third quarter of 2025.

2025 Guidance

The company has revised its annual guidance, including raising net sales and adjusted diluted EPS guidance. Full year guidance continues to assume the consumer is more choiceful in the fourth quarter of 2025. It also assumes that current tariffs remain in place and provides flexibility to respond to changes in consumer demand and the competitive landscape. The company is confident that its strong financial position, diverse brand and category offerings, and range from off-price to luxury provide flexibility to adapt to the evolving environment. The company remains committed to the Bold New Chapter strategy and reinvesting most of the savings from the strategy to support long-term sales growth.

The full outlook for 2025, including fourth quarter of 2025, can be found in the presentation posted to www.macysinc.com/investors. For Macy’s, Inc. the company expects:

The company does not provide reconciliations of the forward-looking non-GAAP measures of comparable O+L+M sales change, Adjusted EBITDA as a percent of total revenue, Core Adjusted EBITDA as a percent of total revenue and adjusted diluted EPS to the most directly comparable forward-looking GAAP measures, and is unable to address the probable significance to future results of any items excluded from these measures, because the timing and amount of excluded items are unreasonably difficult to fully and accurately estimate. See Important Information Regarding Non-GAAP Financial Measures.

Conference Call and Webcasts

A webcast of Macy's, Inc.’s call with analysts and investors to report its third quarter of 2025 sales and earnings will be held today (December 3, 2025) at 8:00 a.m. ET. Macy’s, Inc.’s webcast, along with the associated presentation, is accessible to the media and general public via the company's website at www.macysinc.com. Analysts and investors may call 1-877-407-0832. A replay of the conference call will be available on the company’s website or by calling 1-877-660-6853, using passcode 13756432, about two hours after the conclusion of the call. Additional information on Macy’s, Inc., including past news releases, is available at www.macysinc.com/newsroom.

Important Information Regarding Financial Measures

Please see the final pages of this news release for important information regarding the calculation of the company’s non-GAAP financial measures.

About Macy’s, Inc.

Macy’s, Inc. (NYSE: M) is a trusted source for quality brands through our iconic nameplates – Macy’s, Bloomingdale’s and Bluemercury. Headquartered in New York City, our comprehensive digital and nationwide footprint empowers us to deliver a seamless shopping experience for our customers. For more information, visit macysinc.com.

Forward-Looking Statements

All statements in this release that are not statements of historical fact are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are based upon the current beliefs and expectations of Macy’s, Inc. management and are subject to significant risks and uncertainties. Actual results could differ materially from those expressed in or implied by the forward-looking statements contained in this release because of a variety of factors, including Macy’s, Inc.’s ability to successfully implement its Bold New Chapter strategy, including the ability to realize the anticipated benefits associated with the strategy, competitive pressures from specialty stores, general merchandise stores, off-price and discount stores, manufacturers��� outlets, the Internet and catalogs and general consumer spending levels, including the impact of the availability and level of consumer debt, conditions to, or changes in the timing of proposed real estate and other transactions, declines in credit card revenues, possible systems failures and/or security breaches, Macy’s, Inc.’s reliance on foreign sources of production, including risks related to the disruption of imports by labor disputes, regional or global health pandemics, regional political and economic conditions, the effect of trade policies and tariffs, including changes thereto, the effect of weather, inflation, inventory shortage, and labor shortages, the potential for the incurrence of charges in connection with the impairment of tangible and intangible assets, including goodwill, the amount and timing of future dividends and share repurchases, our ability to execute on our strategies and achieve expectations related to environmental, social, and governance matters, and other factors identified in documents filed by the company with the Securities and Exchange Commission, including under the captions “Forward-Looking Statements” and “Risk Factors” in the company’s Annual Report on Form 10-K for the year ended February 1, 2025. Macy’s, Inc. disclaims any intention or obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

MACY’S, INC.

Important Information Regarding Non-GAAP Financial Measures

The company reports its financial results in accordance with U.S. generally accepted accounting principles (GAAP). However, management believes that certain non-GAAP financial measures provide users of the company's financial information with additional useful information in evaluating operating performance. Management believes that providing supplemental changes in comparable sales on an O+L+M basis, which includes adjusting for the impact of comparable sales of departments licensed to third parties and marketplace sales, assists in evaluating the company's ability to generate sales growth, whether through owned businesses, departments licensed to third parties or marketplace sales, and in evaluating the impact of changes in the manner in which certain departments are operated. Earnings before interest, taxes, depreciation and amortization (EBITDA) is a non-GAAP financial measure which the company believes provides meaningful information about its operational efficiency by excluding the impact of changes in tax law and structure, debt levels and capital investment. In addition, management believes that excluding certain items from EBITDA, net income and diluted earnings per share that are not associated with the company’s core operations and that may vary substantially in frequency and magnitude from period-to-period provides useful supplemental measures that assist in evaluating the company's ability to generate earnings and to more readily compare these metrics between past and future periods.

The company does not provide reconciliations of the forward-looking non-GAAP measures of comparable O+L+M sales change, Adjusted EBITDA, Core Adjusted EBITDA and adjusted diluted earnings per share to the most directly comparable forward-looking GAAP measures, and is unable to address the probable significance to future results of any items excluded from these measures, because the timing and amount of excluded items are unreasonably difficult to fully and accurately estimate.

Non-GAAP financial measures should be viewed as supplementing, and not as an alternative or substitute for, the company's financial results prepared in accordance with GAAP. Certain of the items that may be excluded or included in non-GAAP financial measures may be significant items that could impact the company's financial position, results of operations or cash flows and should therefore be considered in assessing the company's actual and future financial condition and performance. Additionally, the amounts received by the company on account of sales of departments licensed to third parties and marketplace sales are limited to commissions received on such sales. The methods used by the company to calculate its non-GAAP financial measures may differ significantly from methods used by other companies to compute similar measures. As a result, any non-GAAP financial measures presented herein may not be comparable to similar measures provided by other companies.

Non-GAAP financial measures, excluding certain items below, are reconciled to the most directly comparable GAAP measure as follows:

• EBITDA, adjusted EBITDA and core adjusted EBITDA are reconciled to GAAP net income.
• Adjusted net income is reconciled to GAAP net income.
• Adjusted diluted earnings per share is reconciled to GAAP diluted earnings per share.

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