Macy’s on Wednesday reported stronger-than-expected profits for the fourth quarter and said comparable sales rose again, attributing the results to merchandise changes and improved customer service.
For the three-month period ended Jan. 31, Macy’s said net income reached $507 million, or $1.84 per share, compared with $342 million, or $1.21 per share, in the year-ago period. The retailer also reported adjusted earnings per share of $1.67 for the latest quarter, and it said net sales fell to $7.64 billion from $7.68 billion a year earlier.
Macy’s said comparable sales increased 1.8% across its established online and physical stores, a pace slower than the 3.2% increase it logged in the fiscal third quarter after a 1.9% gain in the second quarter. The company said overall comparable sales rose 0.4% for the quarter and that the 1.8% figure included licensed businesses such as cosmetics.
Separately, Macy’s said comparable sales grew 0.4% overall for the quarter, while the 125 locations it had revamped showed a 0.9% increase—an indicator the company highlighted as an encouraging sign after the investment. Macy’s said it began revamping another 75 Macy’s locations starting early this year.
Bloomingdale’s comparable sales rose 9.9% in the latest quarter, while Bluemercury’s comparable sales rose 1.3%. Macy’s said Bloomingdale’s added brands including Totême, Christian Louboutin, Victoria Beckham Beauty, and Skims, saying the additions increased spending from existing shoppers and brought in new customers.
While Macy’s results showed momentum, the company’s outlook reflected what CEO Tony Spring described as uncertainty tied to tariffs and the Iran war. Spring said the reserved view reflects a “tension” between Macy’s relatively healthy business and external economic volatility, including uncertainty from President Donald Trump’s tariffs and the war in Iran that has sent energy prices higher.
Spring told The Associated Press, “Sitting here today, there’s more unknown than there is known,” adding that he does not know “how long this war is going to last” or how long the Strait of Hormuz would be disrupted. He also said he does not know whether the Supreme Court ruling affecting tariffs and the potential tax refunds for companies will happen.
Macy’s said it has yet to see shipping costs rise, but Spring said that if the Iran war drags on, the cost picture could change. He said the company can absorb some increases, but eventually may need to pass some of the costs to shoppers, whose spending has already become more cautious, according to the company.
Looking ahead, Macy’s said it expects full-year net sales to be between $21.4 billion and $21.65 billion and projected comparable sales to be anywhere from down 0.5% to up 0.5%. The company forecast earnings per share between $1.90 and $2.10, while analysts surveyed by FactSet were expecting $2.20 per share on sales of $20.97 billion.
Spring, who took over the CEO role in early 2024, said Macy’s has closed unprofitable stores and invested millions to modernize others. He also pointed to efforts to beef up customer service and to differentiate the retailer’s luxury assortment, even as broader retail challenges tied to tariffs and shifting consumer priorities continue to affect the sector.