Macys M 2026Q1 Earnings Preview Downside Ahead on Struggling Core Brand and Sales Decline

Forward-Looking Analysis
Macy’s is set to release its first-quarter 2026 earnings on May 28th, 2025. Analysts expect earnings per share to be $0.14. Despite surpassing EPS forecasts in Q4 2025, Macy's faces challenges, evidenced by a 3.5% decrease in net sales to $22.3 billion and a 0.9% dip in comparable sales, indicating struggles for the core Macy's brand. The firm anticipates adjusted EPS between $2.05 and $2.25 for 2025, with owned comparable sales potentially declining by 0.5% to 2%. Analysts forecast a 2025 profit of $2.29 per share on sales of $21.34 billion. Macy's guidance for 2025 has been uninspiring, overshadowing positive sales trends at its “First 50,” Bloomingdale’s, and Bluemercury stores, which support its “Bold New Chapter” strategy. However, the lackluster guidance for 2025 has led analysts to expect a low-single-digit percentage reduction in fair value estimates.

Historical Performance Review
In the fourth quarter of 2025, Macy's reported revenue of $7.77 billion and achieved a net income of $342.00 million. The company's EPS stood at $1.23, surpassing expectations despite narrowly missing revenue forecasts. Macy's gross profit reached $3.02 billion, reflecting some positive aspects amid its broader sales challenges.

Additional News
Macy’s reported mixed fourth-quarter results for 2025, exceeding EPS expectations but falling short on revenue forecasts. The company faces headwinds, with a notable 3.5% decline in net sales and a 0.9% drop in comparable sales. Despite these challenges, there is confidence in Macy's “Bold New Chapter” strategy, which includes successful sales trends at its “First 50,” Bloomingdale’s, and Bluemercury stores. However, the uninspiring guidance for 2025 overshadows these positive developments, leading analysts to adjust fair value estimates slightly downward. No new product launches, mergers, or CEO announcements have been reported recently.

Summary & Outlook
Macy's financial health shows mixed signs, with revenue and net income indicating potential struggles. The decline in sales and uninspiring guidance for 2025 raise concerns, yet positive sales trends at flagship stores provide some optimism. The anticipated EPS for 2026Q1 remains low at $0.14, reflecting ongoing challenges. Macy's "Bold New Chapter" strategy offers growth potential, but risks linked to its core brand's performance suggest a cautious outlook. Overall, the prospects remain neutral, with significant downside pressure unless strategic improvements materialize.