Macy’s (M) Stock Today: Q3 2025 Earnings Beat, Outlook Hike and Store Closures Shape the Turnaround

Date: December 6, 2025
Ticker: Macy’s, Inc. (NYSE: M)

Macy’s stock is back in the spotlight. After years of skepticism about department stores, the retailer has just delivered its strongest comparable sales growth in 13 quarters, raised full‑year guidance and pushed its share price to fresh 52‑week highs — even as it continues closing dozens of underperforming stores. ^[1]

At the latest close, Macy’s trades around $22.85 per share, putting the company near the top end of its 52‑week range of roughly $9.76–$23.27 and valuing the business at about $6 billion. ^[2] Over the last six months, the stock has climbed more than 60%, significantly outpacing many retail peers. ^[3]

Below is a deep dive into the latest news, forecasts and analyses as of December 6, 2025, and what they may mean for investors watching Macy’s turnaround story.

1. Macy’s Stock Snapshot as of December 6, 2025

• Share price: about $22.85 intraday on December 6, 2025
• 52‑week range: approximately $9.76 (low) to $23.27 (high) ^[4]
• Market capitalization: roughly $6.0 billion ^[5]
• Trailing P/E ratio: around 13x earnings, a discount to many specialty retail peers ^[6]
• Dividend yield: about 3.2–3.3%, based on a quarterly dividend of ~$0.1824 per share ^[7]
• Balance sheet: modest leverage (debt‑to‑equity around 0.55–0.56) and strong liquidity, with over $2.45 billion in total liquidity and no major debt maturities until 2030. ^[8]

From a style‑score and valuation perspective, Zacks currently gives Macy’s top‑tier “Value” marks, noting the shares trade around 11–12x current‑year EPS versus ~18x for peer retailers, and recently highlighted Macy’s as a value opportunity even at 52‑week highs. ^[9]

2. Q3 2025: Strongest Sales Growth in 13 Quarters

Macy’s third‑quarter 2025 earnings, reported on December 3, 2025, have been the key catalyst for the latest leg of the rally.

Headline numbers

According to the company’s release and follow‑up coverage: ^[10]

• Net sales: about $4.7–4.9 billion, slightly down ~0.6% year‑over‑year owing to planned store closures, but ahead of Wall Street estimates.
• Comparable sales:
  • +2.5% on an owned basis
  • +3.2% on an owned‑plus‑licensed‑plus‑marketplace (O+L+M) basis
  • This marks Macy’s strongest comp performance in more than three years and the second consecutive quarter of positive comps for its “go‑forward” store fleet. ^[11]
• Earnings per share:
  • GAAP EPS: $0.04
  • Adjusted EPS:$0.09, more than double last year’s $0.04 and far better than the consensus loss of around $0.13 that analysts had expected. ^[12]
• Gross margin:39.4%, down only 20 basis points year‑on‑year despite an estimated ~50 bps tariff headwind, thanks to pricing discipline and mix shifts toward higher‑margin categories. ^[13]
• SG&A expenses: down roughly $40 million versus last year, allowing Core Adjusted EBITDA margin to improve to about 5.6%, up from 4.2%. ^[14]

In plain English: Macy’s is selling slightly less overall, because it’s closing stores — but it’s selling better, with more profitable mix, stronger margins than feared, and tighter cost control.

Banner performance: luxury keeps leading

The quarter once again highlighted Macy’s multi‑brand portfolio: ^[15]

• Macy’s nameplate:
  • Net sales down ~2.3% including closures.
  • Comparable sales still up ~1–2%, with the “Reimagine 125” pilot stores outperforming and posting comps in the mid‑2% range.
• Bloomingdale’s:
  • Net sales up 8.6%, with comps up ~9% (O+L+M), marking the banner’s fifth consecutive quarter of comparable‑sales growth.
• Bluemercury:
  • Net sales up ~3.8%, with comps up 1.1%, continuing a long streak of positive same‑store sales.

This luxury and beauty strength is a core pillar of Macy’s “Bold New Chapter” strategy. Analysts and independent commentators have noted that with luxury and beauty now around 30% of total revenue, the company’s revenue mix is skewing toward more resilient, higher‑margin segments. ^[16]

High‑margin credit income and cash‑flow improvement

Another under‑the‑radar positive: credit‑card revenue jumped roughly 32% to about $158 million, driving “Other revenue” up 24% to $200 million. ^[17]

Combined with tight inventory management (inventories roughly flat year‑over‑year) and cost controls, Macy’s generated year‑to‑date operating cash flow of about $247 million, a big swing from a negative figure a year earlier. ^[18]

3. Guidance: Outlook Raised, But Holiday Tone Stays Cautious

Despite the beat, Macy’s isn’t celebrating too loudly.

Full‑year 2025 guidance raised again

Management has raised and tightened its 2025 outlook: ^[19]

• Net sales: now expected between $21.475 billion and $21.625 billion, up from prior guidance of $21.15–$21.45 billion.
• Adjusted EPS: now $2.00–$2.20, versus prior $1.70–$2.05.
• Comparable sales (O+L+M): guided to flat to slightly positive for the year.

Several analyses (including Simply Wall St, Zacks and Nasdaq coverage) point out that even after this upgrade, Macy’s revenue is still projected to be lower than pre‑pandemic levels, highlighting that this is a productivity‑driven turnaround, not a simple “grow the footprint” strategy. ^[20]

Holiday quarter: guidance below the Street

For the current fourth quarter (holiday period), Macy’s expects: ^[21]

• Adjusted EPS:$1.35–$1.55, slightly below consensus expectations around $1.55.

On the earnings call and in Reuters coverage, CEO Tony Spring stressed that consumers are more selective and “choiceful” with their spending in a still‑inflationary environment, especially on discretionary merchandise. ^[22]

The message: Macy’s is executing better, but the macro backdrop remains choppy, and management is wary of promising too much for the most important quarter of the year.

4. The “Bold New Chapter” Strategy: Fewer Stores, Higher Productivity

Macy’s transformation hinges on its “Bold New Chapter” strategy, unveiled in 2024 and now visibly shaping results. ^[23]

Store closures and fleet rationalization

Key elements:

• Closing ~150 underproductive Macy’s stores over about three years (through 2026).
• 66 of those locations were specifically confirmed for closure in 2025; many have already shut their doors. ^[24]
• Macy’s will focus capital on about 350 “go‑forward” stores plus digital channels, with “Reimagine 125” test stores serving as the model for elevated experiences and assortments. ^[25]

Earlier this year, the company noted that the initial “First 50” upgraded stores produced three consecutive quarters of sales growth and record customer satisfaction scores, supporting the rationale for closing weaker locations and reinvesting in stronger ones. ^[26]

Luxury and beauty expansion

At the same time, Macy’s is putting growth capital behind its higher‑end banners: ^[27]

• Up to 15 new Bloomingdale’s stores and around 30 or more Bluemercury openings plus remodels are planned over the next three years.
• These banners have been delivering some of the fastest comp growth in the portfolio, and luxury/beauty categories remain structurally less promotional than mainstream apparel.

Operations, real estate and technology

Strategically, Bold New Chapter also includes: ^[28]

• Modernizing the supply chain and inventory planning, including greater use of data and AI.
• Streamlining operations and cutting SG&A while reinvesting savings into digital, store remodels and high‑growth banners.
• Monetizing $600–$750 million in real‑estate and other assets through 2026 to help fund the transformation.
• Targeting, over time, low‑single‑digit annual comp growth, mid‑single‑digit Adjusted EBITDA dollar growth and a return to pre‑pandemic free cash‑flow levels, with 2025 already showing early progress.

In short, Macy’s is deliberately trading raw scale for healthier, more profitable revenue per square foot.

5. Wall Street and Media Reactions Since December 3, 2025

Jim Cramer: “Benefits of closing weak stores”

On December 6, 2025, Jim Cramer highlighted Macy’s as one of the winners from the latest macro rally, noting that Wall Street had expected a far weaker report. He pointed to 9% same‑store sales growth at Bloomingdale’s and argued that investors are finally seeing the upside of closing weak stores under Tony Spring’s leadership. ^[29]

Morgan Stanley: Price target raised, but still “Equal Weight”

On December 6, MarketBeat reported that Morgan Stanley raised its price target on Macy’s from $20 to $21, while maintaining an “Equal Weight” rating: ^[30]

• The new target implies a modest downside of about 5–6% from recent prices, signaling that Morgan Stanley sees the stock as fairly valued after its big run.
• The firm highlighted the Q3 beat ($0.09 EPS vs. a projected loss, ~$4.91 billion revenue vs. ~$4.52 billion expected) and the upgraded FY 2025 EPS guidance of $2.00–$2.20.
• Consensus across analysts still sits at a “Hold”, with an average price target around $19.75, below the current share price. ^[31]

Zacks: Value, momentum and a Strong Buy upgrade

Zacks has been notably constructive recently: ^[32]

• A December 4 article highlighted Macy’s move to a 52‑week high of about $23.27, with shares up over 30% year‑to‑date and consistently beating earnings estimates.
• Zacks assigns Macy’s Value, Growth and Momentum scores of A/B/A, for an overall VGM score of A, and cites a forward P/E around 11–12x, well below peer averages.
• A separate note (December 5) upgraded Macy’s to Zacks Rank #1 (Strong Buy), pointing to rising earnings estimates and ongoing positive surprises.

Telsey, other brokerages and the consensus view

Telsey Advisory Group recently nudged its FY 2026 EPS estimate to $1.98 and introduced FY 2027 at $2.07, reiterating a “Market Perform” rating with a $22 price target — roughly in line with where the stock trades now. ^[33]

The same MarketBeat coverage notes that, across Wall Street: ^[34]

• Around 2 analysts rate Macy’s Strong Buy, 1 rates it Buy, 11 call it Hold, and 1 rates it Sell.
• The consensus price target remains in the high‑teens, below current levels, indicating that many analysts see limited upside from here unless the turnaround progresses faster than expected.

Simply Wall St: Improved story, but potential downside to fair value

Simply Wall St’s December 5 analysis takes a more cautious valuation stance: ^[35]

• The article notes Macy’s raised its 2025 sales guidance despite store closures that removed roughly $700 million in annual revenue, reframing the story around higher productivity per store and digital growth.
• However, its internal model projects 2028 revenue of about $18.5 billion and earnings of ~$663 million, and estimates a fair value of around $17.32 per share — roughly 22% below the current stock price.
• Their takeaway: guidance has improved, but tariffs, promotional pressure and a shrinking store base could still cap earnings progress.

Earlier and ongoing skepticism

Some earlier 2025 research (for example, Seeking Alpha’s mid‑year downgrade to Hold) argued that Macy’s still faces core sales pressure and leadership uncertainty, despite strength at Bloomingdale’s and Bluemercury. ^[36]

Additionally, a recent Motley Fool piece highlighted that, although Macy’s stock has rallied strongly this year, at least one institutional fund trimmed about $6.7 million of its position, a reminder that not all professional investors are convinced the turnaround is durable. ^[37]

6. Background: Activists, Real Estate and Takeover Talk

Macy’s transformation is happening in the shadow of activist and buyout drama over the past two years:

• In December 2023, a group led by Arkhouse Management and Brigade Capital made an unsolicited $5.8 billion buyout proposal, roughly $21 per share at the time. ^[38]
• The group later raised its offer to about $6.6–6.9 billion, or $24–$24.80 per share, arguing that Macy’s real estate made the company undervalued as a public retailer. ^[39]
• In July 2024, Macy’s board terminated discussions, saying the proposal lacked compelling value and had uncertain financing. ^[40]

Separate pressure also came from Barington Capital and Thor Equities, which publicly urged Macy’s to unlock real‑estate value and consider “drastic changes” to boost the stock price. ^[41]

While these takeover efforts are no longer active, they frame how some investors still think about Macy’s — not only as a retailer, but also as a real‑estate‑rich asset where the stock price may underestimate underlying property value.

7. Key Themes and Risks for Investors

This section is informational and not individualized investment advice.

Based on the latest news, forecasts and commentary through December 6, 2025, several themes stand out:

1. Turnaround is real, but still fragile
   • Two straight quarters of positive comps, margin resilience and rising guidance support the view that “Bold New Chapter” is working. ^[42]
   • However, top‑line sales are still below pre‑pandemic levels, and the core Macy’s banner continues to face competitive and traffic challenges.
2. Valuation looks inexpensive vs. history and peers
   • At roughly 13x trailing EPS and ~11–12x forward earnings, Macy’s trades at a discount to many apparel and department‑store peers, even after a 60%+ six‑month rally. ^[43]
   • Some analysts (Zacks, certain LinkedIn and community narratives) argue the stock still trades at “depressed” multiples relative to its improving fundamentals, while others (Simply Wall St) see overvaluation relative to fair value models. ^[44]
3. Store closures vs. growth: execution risk is high
   • Closing ~150 stores while trying to grow comps, luxury sales and digital is a tightrope act; missteps could erase recent gains. ^[45]
4. Tariffs and promotions could squeeze margins
   • Q3 margins held up even with about a 50 bps tariff headwind, but analysts warn that ongoing tariffs and heavy holiday promotions could pressure profits if consumer demand softens. ^[46]
5. Capital returns are meaningful — and double‑edged
   • Macy’s returned roughly $99 million to shareholders in Q3 alone (dividends and buybacks) and has about $1.2 billion left on its repurchase authorization. ^[47]
   • Buybacks can boost EPS, but if the turnaround stalls, repurchased shares at higher prices could be seen as poor capital allocation.

8. Is Macy’s Stock a Buy After the Rally?

Whether Macy’s is attractive at today’s price depends on how you weigh the bull and bear cases reflected in current research.

The bullish view

Supporters point to: ^[48]

• Operational inflection: Best comps in 13 quarters, improved margins and raised guidance suggest the turnaround is gaining traction.
• Portfolio mix upgrade: Bloomingdale’s and Bluemercury are delivering high‑single‑digit to mid‑single‑digit comp growth and represent a growing slice of revenue and profit.
• Lean store base + digital: Closing weaker stores while investing in fewer, better locations and e‑commerce should improve productivity and long‑term earnings power.
• Cheap relative to history: Even after the rally, Macy’s trades at a discount to peer P/E and cash‑flow multiples, with a 3%+ dividend yield and ongoing buybacks.
• Balance‑sheet strength: Low near‑term refinancing risk and ample liquidity give management room to invest and continue shareholder returns.

This is the camp you’ll find echoed in some Zacks commentary, certain LinkedIn analyses, and bullish trader coverage around the September and December breakouts. ^[49]

The cautious or bearish view

More skeptical voices emphasize: ^[50]

• Secular headwinds: The mid‑market department‑store model still faces structural pressure from off‑price, specialty and online players.
• Shrinking revenue base: Even with better comps, total sales are projected to trend lower over the next few years, as store closures outweigh organic growth.
• Macro & holiday risk: Management’s own holiday guidance is conservative, hinting at a cautious consumer and potentially intense promotional environment.
• Valuation vs. fair‑value models: Some fundamental models (e.g., Simply Wall St) suggest fair value in the high teens, implying downside from current levels.
• Insider selling & mixed institutional signals: Some executives have sold shares into strength, and at least one fund has materially reduced its position after the rally.

9. Bottom Line

As of December 6, 2025, Macy’s sits at a crossroads:

• The numbers are clearly improving — Q3 2025 brought a clean beat, stronger comps, resilient margins and raised full‑year guidance. ^[51]
• The stock has responded, more than doubling from its 52‑week low and recently setting new highs above $23. ^[52]
• Yet the market’s verdict is still mixed: consensus remains Hold, price targets cluster below the current share price, and analyses range from “deep value with upside” to “modestly overvalued vs. fair value.” ^[53]

For investors, Macy’s is now less of a “collapse or buyout” story and more of a pure execution bet:

• If Bold New Chapter keeps delivering — and margins hold up despite tariffs and cautious consumers — there may still be room for earnings growth and multiple expansion.
• If macro or execution stumbles, the current valuation, even if optically cheap, may not offer as much downside protection as the past two years, especially after such a strong run.

Anyone considering an investment should evaluate their risk tolerance, time horizon and portfolio mix, and, ideally, pair this news‑driven view with their own reading of Macy’s full financials and risk disclosures.

References

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