Macy’s returns to positive comparable sales growth in fiscal year 2025

US department store group Macy’s has reported its financial results for the fourth quarter and full fiscal year 2025, highlighting a return to positive comparable sales growth across its portfolio. The group, which operates Macy’s, Bloomingdale’s, and Bluemercury, exceeded its previous guidance despite navigating significant tariff headwinds throughout the period.

For the full year ending January 31, 2026, Macy’s achieved a 1.5 percent increase in comparable sales. The go-forward business, which includes the locations and digital channels the company intends to maintain long-term, saw a comparable sales increase of 1.7 percent. However, net sales, which include the impact of store closures, decreased 2.4 percent to 21.80 billion dollars.

Bloomingdale’s leads luxury growth

The luxury segment proved to be a significant driver of performance for the group. US upscale department store Bloomingdale’s reported a 9.9 percent increase in comparable sales for Q4 and a 7.4 percent rise for the full year. Net sales for the nameplate reached 6.30 percent growth for FY25.

Macy’s Inc. chairman and chief executive officer Tony Spring attributed this performance to the brand’s ability to capture demand in premium contemporary and luxury sectors.

“Bloomingdale’s exceptional performance underscores its ability to elevate the customer experience and capture demand across premium contemporary to luxury businesses,” Spring stated.

Meanwhile, skincare and beauty specialist Bluemercury posted a 1.6 percent increase in annual comparable sales, with net sales rising 2.6 percent.

Strategic progress under Bold New Chapter

The results mark the conclusion of the second year of the group’s ‘Bold New Chapter’ strategy. A key component of this initiative is the ‘Reimagine 125’ programme, which focuses on enhancing 125 Macy’s locations. These specific stores saw comparable sales growth of one % during the fiscal year, slightly outperforming the broader Macy’s nameplate go-forward comparable growth of 0.6 percent.

The Macy’s nameplate overall, including stores slated for closure, saw net sales decline 3.8 percent to 21.80 billion dollars for the year. However, its comparable sales remained in positive territory with a 0.4 percent increase.

Macy’s reported GAAP diluted earnings per share (EPS) of 2.32 dollars for the year. Adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) stood at 1.80 billion dollars, representing 8.1 percent of total revenue.

The board of directors returned 448 million dollars to shareholders in FY25, comprising 197 million dollars in cash dividends and 251 million dollars in share repurchases. A 5 percent increase in the quarterly dividend was also declared, raising it to 19.15 cents per share.

Guidance reflects cautious 2026 outlook

Looking ahead to fiscal year 2026, Macy’s has adopted a prudent stance due to ongoing macroeconomic and geopolitical uncertainties. The group expects net sales to range between 21.40 billion dollars and 21.65 billion dollars.

Comparable sales for the upcoming year are projected to range from a 0.5 percent decrease to a 0.5 percent increase. The company noted that the first half of FY26 is expected to endure a more meaningful impact from tariffs than the second half.

The group plans to continue its investment strategy, expanding the ‘Reimagine’ initiative to 200 locations while continuing to support the growth of its luxury nameplates.