Macy's Earnings Beat, Guidance Flags Sales Decline

Macy's earnings topped forecasts on March 18, 2026, after stronger-than-expected fourth-quarter sales led by Bloomingdale's, even as the company issued fiscal 2026 net-sales guidance implying a modest year-over-year decline.

Quarter Results and Outlook

Macy's, Inc. reported fourth-quarter net sales of $7.6 billion, down 1.7% from a year earlier but about $130 million above the FactSet estimate of $7.5 billion. Adjusted earnings per share were $1.67, exceeding the pre-report estimate range of $1.53 to $1.56; GAAP EPS was $1.84. Comparable sales rose 1.8%, marking the third consecutive quarter of growth. Bloomingdale's comparable sales jumped 9.9%, while the Macy's brand increased 0.4%. The company said comparable sales exceeded its own guidance for the period.

Macy's returned to annual comparable-sales growth for fiscal 2025 and set fiscal 2026 net-sales guidance between $21.4 billion and $21.7 billion, implying a decline from fiscal 2025 net sales of $21.8 billion. The company linked this outlook to macroeconomic and geopolitical conditions.

Store Strategy and Capital Returns

The Reimagine 200 store-refresh program lifted comparable sales by 0.9% at the 125 upgraded locations. Macy's plans to expand the program by adding 75 more stores by 2026. The company intends to close 150 stores over three years while investing in roughly 350 remaining locations.

In fiscal 2025, Macy's repurchased 2.3 million shares for $50 million and raised its quarterly dividend by 5% to $0.1915 per share, payable April 1, 2026. The quarter combined clear brand-level momentum with a conservative fiscal 2026 sales range tied to external risks, making store execution and capital returns near-term focal points for performance.