Macys — Financial Results
Total Sales Declined Due to Store Closures, But Comparable Stores Grew
| Metric | 2025 | 2024 |
|---|---|---|
| Net sales | $21,764M | $22,293M |
| Change in comparable sales | +1.5% | -0.9% |
| Digital sales as % of net sales | 35% | 33% |
Overall net sales fell $529 million (2.4%), but the key detail is that roughly $700 million of that drop came from stores deliberately closed as part of the restructuring strategy. Strip those out and the remaining store base actually grew — comparable sales (a measure of like-for-like performance across continuing locations) rose 1.5%, reversing a -0.9% decline the prior year.
Bloomingdale's Is the Clear Standout Performer
| Nameplate | Comparable Sales Growth |
|---|---|
| Macy's | +0.4% |
| Bloomingdale's | +7.4% |
| Bluemercury | +1.6% |
Bloomingdale's posted 7.4% comparable sales growth — its strongest result in 14 quarters — driven by fragrance, designer apparel, and fine jewelry. Bluemercury hit its 20th consecutive quarter of comparable sales growth. The luxury and beauty segments are clearly outpacing the core Macy's nameplate.
Gross Margin Squeezed by Tariffs
| Metric | 2025 | 2024 |
|---|---|---|
| Gross margin | $8,267M (38.0%) | $8,553M (38.4%) |
Gross margin (revenue left after the cost of merchandise) dipped 40 basis points (0.4 percentage points) to 38.0%. Management directly attributed this to tariffs on imported goods, partially offset by mitigation efforts. This is worth watching — if trade costs remain elevated, margin pressure could persist into 2026.
A $328 Million Legal Settlement Flattered Reported Earnings
The company received a net $328 million from settling credit card interchange fee litigation — a one-time legal windfall that meaningfully boosted reported net income. Reported diluted earnings per share came in at $2.32, but the adjusted figure (which strips out one-time items including this settlement) was also $2.32 — down from $2.64 adjusted in 2024. So while headline profit improved, the underlying earnings trend is actually declining year-over-year.
Operating Cash Flow Strengthened and Debt Is Being Actively Reduced
| Metric | 2025 | 2024 |
|---|---|---|
| Operating cash flow | $1,430M | $1,278M |
| Net interest expense | $97M | $115M |
| Cash on hand | $1,246M | $1,306M |
The business generated $1,430 million in cash from operations, up from $1,278 million. The company used some of that to restructure its debt — issuing $500 million of new notes while redeeming approximately $838 million of older, higher-cost debt — reducing total long-term debt by roughly $340 million and cutting interest expense 16% year-over-year. The balance sheet remains stable with $1.25 billion cash and nearly $2 billion available on its credit facility.
Capital Returned to Shareholders While Investing in Stores
The company spent $740 million on capital expenditures (store upgrades, technology, supply chain) in 2025 and plans to increase that to $800 million in 2026. Alongside this investment, it returned capital to shareholders by paying $197 million in dividends and repurchasing $251 million of its own shares — 17.7 million shares at an average price of $14.21. The dividend was also nudged up slightly, from $0.1824 to $0.1915 per quarter starting April 2026.