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Macy’s Raises 2025 Outlook After Best Sales Growth in Three Years, Flags Cautious Holiday

A surprise Q3 profit signals early gains from Macy’s turnaround.

Overview

  • Third-quarter revenue reached $4.71 billion versus $4.62 billion expected, with adjusted earnings of $0.09 per share versus a projected loss.
  • Companywide comparable sales rose about 3.2% for the strongest gain in 13 quarters, led by Bloomingdale’s near 9% and Bluemercury up 1.1%, as Reimagine 125 stores climbed 2.7%.
  • Macy’s raised full-year guidance to $21.475–$21.625 billion in net sales and $2.00–$2.20 in adjusted EPS, and now forecasts flat to 0.5% comparable sales growth.
  • CEO Tony Spring described a prudent holiday view with consumers staying choiceful and tougher year-over-year comparisons, while tariffs reduced Q3 gross margin by roughly 50 basis points despite mitigation efforts.
  • The Bold New Chapter strategy continues with plans to close about 150 Macy’s stores and expand Bloomingdale’s and Bluemercury, contributing to an estimated $700 million annual sales drag from recent closures.