Macy’s (M) Earnings Preview: Income and earnings anticipated to say no in Q3 2025

Shares of Macy’s, Inc. (NYSE: M) rose 2% on Monday. The inventory has gained 72% previously three months. The retailer is ready to publish its earnings outcomes for the third quarter of 2025 on Wednesday, December 3, earlier than markets open. Right here’s a have a look at what to anticipate from the earnings report:

Income

Macy’s has guided for internet gross sales of approx. $4.5-4.6 billion for the third quarter of 2025. Analysts are projecting $4.53 billion for Q3, which signifies a decline of over 4% from the identical interval a 12 months in the past. Within the second quarter of 2025, internet gross sales decreased 2.5% year-over-year to $4.81 billion.

Earnings

Macy’s has guided for adjusted loss per share of $0.20-0.15 for Q3 2025. Analysts are predicting a lack of $0.15 per share, which compares to adjusted earnings per share of $0.04 reported within the year-ago quarter. In Q2 2025, adjusted EPS declined 23% YoY to $0.41.

Factors to notice

Macy’s has forecast comparable gross sales to be down approx. 1.5% to up 0.5% within the third quarter of 2025. In Q2 2025, comparable gross sales have been up 0.8% on an owned foundation and up 1.9% on an owned-plus-licensed-plus-marketplace (O+L+M) foundation.

Macy’s continues to face a dynamic macro setting and it stays cautious on client demand and competitors. Nonetheless, the corporate believes its multi-brand, multi-category, and multi-nameplate mannequin offers it the flexibleness to reply to client demand in all environments. Macy’s is prone to have seen a wholesome back-to-school season and it seems to be well-positioned for the vacation season. These components might have benefited the third quarter.

Macy’s luxurious nameplates are performing effectively, with Bloomingdale’s and Bluemercury delivering gross sales and comps progress within the second quarter. For the Macy’s nameplate, though gross sales declined 3.8% final quarter, comps rose 1.2%. Comps for its go-forward enterprise and its Reimagine 125 areas additionally noticed progress. These tendencies are prone to have continued within the to-be-reported quarter.

The retailer continues to make progress on its Daring New Chapter technique. It has been reshaping its retailer base by closing underperforming areas and investing in areas with extra potential. It has additionally been investing in manufacturers and partnerships and in bettering its omni-channel capabilities. These efforts are anticipated to proceed yielding advantages.