TLDR
- Macy’s posted Q4 adjusted EPS of $1.67, beating Wall Street’s estimate of $1.57
- Revenue fell 1.7% year over year to $7.64 billion, but topped forecasts of $7.62 billion
- Comparable-store sales rose 1.8%, well ahead of the 0.9% decline analysts expected
- The stock jumped 9% in premarket trading Wednesday, after falling 23% year-to-date
- Full-year EPS guidance of $1.90–$2.10 came in below the $2.20 analysts had penciled in
Macy’s (M) posted a stronger-than-expected fourth quarter on Wednesday, sending its stock up 9% in premarket trading after a rough year on the market.
Macy's Q4 2026 Earnings
– Adj EPS $1.67 (est $1.54)
– Total Rev. $7.92B (est $7.77B)
– Net Sales $7.64B (est $7.51B)
– Sees FY Net Sales $21.4B To $21.65B (est $21.11B)
– Sees FY Adj EPS $1.90 To $2.10 (est $2.21)
— First Squawk (@FirstSquawk) March 18, 2026
The department store chain reported adjusted Q4 earnings of $1.67 per share, beating the $1.57 Wall Street consensus. Revenue came in at $7.64 billion, down 1.7% from a year ago but still ahead of the $7.62 billion analysts had expected.
Macy’s, Inc., M
The revenue decline was largely tied to planned store closures throughout the prior fiscal year. Strip those out, and the picture looks better.
Comparable-store sales — a key retail metric covering stores open more than a year — rose 1.8%. That beat the 0.9% decline analysts had forecast and was one of the cleaner numbers in the report.
CEO Tony Spring’s “Bold New Chapter” strategy entered its second year, with the company continuing to push toward higher-end customers. That shift showed up in the brand breakdown: the Macy’s nameplate saw comparable sales rise just 0.4%, while Bloomingdale’s grew 8.5% and Bluemercury added 2.5%.
The stock had dropped 23% heading into the print, so even a modest beat carried some weight.
Guidance Falls Short
For fiscal 2026, Macy’s guided net sales of $21.4 billion to $21.7 billion, with adjusted EPS between $1.90 and $2.10. Analysts were looking for $21.42 billion in sales and $2.20 in EPS.
The sales range straddles the consensus. The earnings range misses it at the midpoint — and at the top end.
Management flagged a “prudent approach” to the outlook, citing macroeconomic and geopolitical risks. Consumer spending remains a pressure point, particularly for price-sensitive shoppers still dealing with inflation.
Store closures are expected to cost roughly $145 million in missed sales this year. That’s a known headwind, but still a headwind.
Tariff Impact Flagged for Q1
Tariffs are the other variable Macy’s is watching closely. The company sources heavily from China and said duties will weigh most on margins in the first quarter of 2026 — the biggest impact expected in that window.
Macy’s noted it assumes tariff pressure will ease in the second half of the year. That view is shared by several other retailers, including Walmart and Kohl’s, all of whom have issued cautious full-year guidance.
A Supreme Court ruling has moved the U.S. to a uniform 10% tariff, but companies that sourced inventory at higher rates still face near-term cost pressure as that stock moves through the system.
Retailers with China exposure are watching Q1 closely. For Macy’s, that means a tougher first half before — if the assumption holds — some relief kicks in later in the year.
The Q4 beat gave investors something to work with. Comparable-store sales rose 0.4% for the Macy’s brand, 8.5% at Bloomingdale’s, and 2.5% at Bluemercury.
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