TLDR
- Q4 adjusted earnings reached $1.67 per share, surpassing analyst expectations of $1.57
- Quarterly sales totaled $7.64 billion, declining 1.7% annually but exceeding the $7.62 billion forecast
- Same-store sales climbed 1.8%, crushing projections of a 0.9% drop
- Shares rallied 9% during Wednesday’s premarket session following a 23% year-to-date decline
- Fiscal 2026 EPS outlook of $1.90–$2.10 falls short of the $2.20 analyst consensus
Macy’s (M) delivered fourth-quarter results that exceeded Wall Street projections on Wednesday, triggering a 9% premarket stock surge after months of market underperformance.
Macy's Q4 2026 Earnings
– Adj EPS $1.67 (est $1.54)
– Total Rev. $7.92B (est $7.77B)
– Net Sales $7.64B (est $7.51B)
– Sees FY Net Sales $21.4B To $21.65B (est $21.11B)
– Sees FY Adj EPS $1.90 To $2.10 (est $2.21)
— First Squawk (@FirstSquawk) March 18, 2026
The iconic retailer announced adjusted fourth-quarter profits of $1.67 per share, outpacing the Street’s $1.57 consensus estimate. Sales reached $7.64 billion, representing a 1.7% year-over-year decrease yet still topping analyst projections of $7.62 billion.
The year-over-year sales contraction stems primarily from strategic store closures executed during the previous fiscal year. Excluding these planned shutdowns reveals a healthier operational picture.
Same-store sales — a critical retail indicator measuring locations open at least 12 months — increased 1.8%. This performance significantly exceeded analyst predictions of a 0.9% contraction and emerged as a standout metric in the quarterly report.
CEO Tony Spring’s “Bold New Chapter” transformation initiative moved into year two, with continued emphasis on attracting affluent consumers. This strategic pivot manifested clearly across brand performance: the flagship Macy’s banner recorded modest 0.4% comparable sales growth, while Bloomingdale’s surged 8.5% and Bluemercury posted 2.5% gains.
With shares down 23% prior to the earnings announcement, even moderate outperformance provided meaningful support.
Guidance Falls Short
For fiscal 2026, management projected net sales between $21.4 billion and $21.7 billion, with adjusted earnings per share ranging from $1.90 to $2.10. Wall Street had anticipated $21.42 billion in revenue and $2.20 in earnings per share.
While the sales guidance brackets consensus expectations, the earnings forecast misses at both the midpoint and upper bound.
Executives emphasized a “prudent approach” to their outlook, acknowledging macroeconomic uncertainty and geopolitical volatility. Consumer spending pressures persist, particularly affecting budget-conscious shoppers still grappling with elevated inflation.
Ongoing store closures are projected to eliminate approximately $145 million in revenue this year. While anticipated, this drag remains significant.
Tariff Impact Flagged for Q1
Trade tariffs represent another critical variable in Macy’s planning. With substantial China-based sourcing, the company anticipates import duties will most severely impact margins during the first quarter of 2026 — the peak pressure window.
Management indicated expectations for tariff headwinds to moderate during the year’s latter half. This perspective aligns with other major retailers, including Walmart and Kohl’s, which have similarly issued conservative annual projections.
A Supreme Court decision established a universal 10% tariff rate, yet retailers with inventory purchased under higher duty structures continue facing near-term cost pressures as existing stock moves through channels.
Retailers with significant Chinese supply chain exposure are closely monitoring Q1 performance. For Macy’s, this translates to a more challenging first half before potential relief materializes later in the year, assuming current assumptions hold.
The fourth-quarter performance provided investors tangible reasons for optimism. Comparable sales grew 0.4% for the Macy’s brand, jumped 8.5% at Bloomingdale’s, and rose 2.5% at Bluemercury.
