Macys 2026 Q3 Earnings Net Income Plummets 60.7% Amid Revenue Decline

Macy's (M) reported fiscal 2026 Q3 earnings on Dec 10, 2025, with total revenue slipping 0.6% to $4.71 billion. The company provided 2027 guidance, projecting 3-5% revenue growth and adjusted EPS of $0.45-$0.50, but results fell short of expectations with declining net income.

Revenue

Macy’s total revenue declined 0.6% to $4.71 billion in Q3 2026, down from $4.74 billion a year earlier. Women’s Apparel led the revenue segment with $1.10 billion, while Men’s and Kids’ contributed $1.02 billion. Women’s Accessories, Shoes, Cosmetics, and Fragrances generated $1.95 billion, and Home/Other revenue totaled $638 million. Credit card revenues, net, stood at $158 million, and Macy’s Media Network revenue, net, was $42 million. Other revenue streams, including $200 million, rounded out the total.

Earnings/Net Income

Earnings per share (EPS) dropped 60.0% to $0.04 in Q3 2026, compared to $0.10 in Q3 2025. Net income fell to $11 million, a 60.7% decline from $28 million in the prior year, marking a significant deterioration in profitability.

Post-Earnings Price Action Review

The strategy of buying M stocks when revenue beats expectations and selling after 30 days delivered strong performance, achieving a 195.81% return versus a 139.85% benchmark. With a maximum drawdown of 0.00% and a Sharpe ratio of 0.90, the strategy demonstrated robust risk management.

CEO Commentary

CEO Jeff Gennette emphasized omnichannel growth and customer experience, stating, “Our private-label brands and digital initiatives remain key growth drivers.” He acknowledged challenges like inflationary pressures but highlighted progress in inventory optimization and store-level profitability.

Guidance

Macy’s expects full-year 2027 revenue growth of 3-5% and adjusted EPS of $0.45-$0.50. CAPEX will remain within $250-300 million for store modernization and digital infrastructure. The company aims to sustain profit margins through cost discipline and inventory turnover improvements.

Additional News

Macy’s SEC 10-Q filing on Dec 10, 2025, highlighted supply chain modernization via automation, robotics, and AI, aligning with its “A Bold New Chapter” strategy to reimagine 125 locations and enhance customer experiences. Separately, a federal court ruled on Dec 11, 2025, that a former fulfillment associate’s wage case does not require arbitration, citing exemptions under the Federal Arbitration Act.