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Macy's (M)
NYSE:M
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Macy's
(NYSE:M)
69Neutral
Positive Factors
Asset Divestiture
Following the divestiture of its U.S. car wash business, Driven Brands will emerge leaner, more focused, and better positioned to capitalize on resilient auto service demand.
Earnings
Macy's reported higher than expected earnings per share, driven by stronger other revenues and cost management.
Restructuring
The company is restructuring to focus on a higher-growth, higher-margin portfolio.
Negative Factors
Market Challenges
Disruptions imply slower growth, a looser labor market, and a much higher inflation peak this year.
Retail Performance
Macy's guidance for lower same-store sales growth and a core EBIT dollar loss indicate potential struggles in maintaining retail performance.
Tariffs
Tariffs undermine purchasing power by boosting import prices, policy-related uncertainty instilling precaution on spending, and balance sheets less supportive.
Macy's (M) vs. S&P 500 (SPY)
Market Cap
$3.18B
Dividend Yield6.17%
Average Volume (3M)7.52M
Price to Earnings (P/E)5.5
Beta (1Y)1.16
Revenue Growth-3.60%
EPS Growth442.87%
CountryUS
Employees94,189
SectorConsumer Cyclical
Sector Strength46
IndustryDepartment Stores
Share Statistics
EPS (TTM)2.06
Shares Outstanding278,574,300
10 Day Avg. Volume6,095,268
30 Day Avg. Volume7,515,497
Financial Highlights & Ratios
PEG Ratio0.01
Price to Book (P/B)N/A
Price to Sales (P/S)0.16
Price to Cash Flow (P/CF)-5.50
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$14.10Price Target Upside23.90% Upside
Rating ConsensusHold
Number of Analyst Covering12
Macy's Business Overview & Revenue Model
Company DescriptionMacy's, Inc., an omni-channel retail organization, operates stores, Websites, and mobile applications. The company sells a range of merchandise, such as apparel and accessories for men, women, and children; cosmetics; home furnishings; and other consumer goods. As of January 29, 2022, it operated 725 department stores in the District of Columbia, Puerto Rico, and Guam under the Macy's, Macy's Backstage, Market by Macy's, Bloomingdale's, Bloomingdale's The Outlet, Bloomies, and bluemercury brands. It also operates in Dubai, the United Arab Emirates, and Al Zahra, Kuwait under the license agreements. The company also operates as a beauty products and spa retailer. The company was formerly known as Federated Department Stores, Inc. and changed its name to Macy's, Inc. in June 2007. Macy's, Inc. was founded in 1830 and is based in New York, New York.
How the Company Makes MoneyMacy's generates revenue through the sale of a broad spectrum of products in both its physical retail stores and its e-commerce platform. The company’s primary revenue streams include the sale of apparel, accessories, home furnishings, and beauty products. Macy's leverages seasonal events, promotional sales, and exclusive brand collaborations to drive foot traffic and increase sales. Additionally, Macy's benefits from its loyalty programs, which incentivize repeat purchases and enhance customer retention. The company also explores strategic partnerships and exclusive merchandise agreements to attract a wider audience and boost its market presence. Furthermore, Macy's capitalizes on real estate assets through leasing arrangements and other revenue-generating strategies.
Macy's Financial Statement Overview
Summary
Macy's financial performance shows improvements in profitability and cash flow management, with stable gross profit margins and improved EBIT and EBITDA margins. The balance sheet is stronger with better leverage management, but high debt levels remain a concern. Cash flow is robust, supporting operational needs.Income Statement
Macy's has shown mixed performance in its income statement metrics. The gross profit margin remains consistent, indicating stable cost management. However, the net profit margin has fluctuated, recovering from a negative position in 2021 to a modest positive in 2025. Revenue growth has been inconsistent, with a recent decline. The EBIT and EBITDA margins have improved, reflecting better operational efficiency, but the overall profitability still faces challenges.65
Positive
Balance Sheet
The balance sheet indicates a solid equity position with improving stockholders' equity over the years. The debt-to-equity ratio has decreased, suggesting better leverage management. The equity ratio has also improved, highlighting a stronger financial foundation. However, total debt remains significant, posing potential risks if not managed carefully.70
Positive
Cash Flow
Cash flow metrics show robust free cash flow growth and a strong operating cash flow to net income ratio, indicating healthy cash generation relative to earnings. Despite fluctuations in free cash flow, Macy's has maintained positive cash flow trends, supporting its financial stability and operational needs.75
Positive
| Breakdown | ||||
| Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 | Mar 2021 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 23.01B | 23.87B | 25.30B | 25.29B | 18.10B | Gross Profit |
| 9.27B | 9.72B | 10.00B | 10.34B | 5.81B | EBIT |
| 909.00M | 382.00M | 1.73B | 2.35B | -956.00M | EBITDA |
| 1.83B | 1.16B | 2.54B | 3.00B | -3.54B | Net Income Common Stockholders |
| 582.00M | 105.00M | 1.18B | 1.43B | -3.94B |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 1.31B | 1.03B | 862.00M | 1.71B | 1.68B | Total Assets |
| 16.40B | 16.25B | 16.87B | 17.59B | 17.71B | Total Debt |
| 5.71B | 6.34B | 6.40B | 6.83B | 8.04B | Net Debt |
| 4.40B | 5.31B | 5.54B | 5.11B | 6.37B | Total Liabilities |
| 11.85B | 12.11B | 12.78B | 13.97B | 15.15B | Stockholders Equity |
| 4.55B | 4.14B | 4.08B | 3.62B | 2.55B |
| Cash Flow | Free Cash Flow | |||
| 760.00M | 312.00M | 320.00M | 2.12B | 183.00M | Operating Cash Flow |
| 1.28B | 1.30B | 1.61B | 2.71B | 649.00M | Investing Cash Flow |
| -592.00M | -913.00M | -1.17B | -370.00M | -325.00M | Financing Cash Flow |
| -413.00M | -220.00M | -1.30B | -2.38B | 699.00M |
Macy's Technical Analysis
Negative
11.38
Price Trends
14.01
Negative
14.81
Negative
15.29
Negative
Market Momentum
-0.36
Positive
41.01
Neutral
13.59
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For M, the sentiment is Negative. The current price of 11.38 is below the 20-day moving average (MA) of 13.17, below the 50-day MA of 14.01, and below the 200-day MA of 15.29, indicating a bearish trend. The MACD of -0.36 indicates Positive momentum. The RSI at 41.01 is Neutral, neither overbought nor oversold. The STOCH value of 13.59 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for M.
Macy's Risk Analysis
Macy's disclosed 27 risk factors in its most recent earnings report. Macy's reported the most risks in the “Production” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Macy's Peers Comparison
Overall Rating
UnderperformOutperform
Sector (59)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
78 Outperform | $140.12B | 29.45 | 61.98% | 1.20% | 3.95% | ― | |
70 Outperform | $14.89B | 30.24 | 42.55% | ― | 9.33% | 50.05% | |
69 Neutral | $3.18B | 5.52 | 13.40% | 6.17% | -3.60% | 442.87% | |
69 Neutral | $5.10B | 8.71 | 33.98% | 0.31% | -4.13% | -17.60% | |
66 Neutral | $4.00B | 13.76 | 29.58% | 3.17% | 2.20% | 120.00% | |
59 Neutral | $12.18B | 11.09 | -1.08% | 3.77% | 1.26% | -19.82% | |
57 Neutral | $739.19M | 6.82 | 2.83% | 24.47% | -7.18% | -65.92% |
* Consumer Cyclical Sector Average
Performance Comparison
M
Macy's
11.38
-7.30
-39.08%
DDS
Dillard's
317.25
-98.00
-23.60%
KSS
Kohl's
7.17
-15.53
-68.41%
JWN
Nordstrom
23.34
4.53
24.08%
TJX
TJX Companies
122.16
27.21
28.66%
BURL
Burlington Stores
231.50
32.20
16.16%
Macy's Earnings Call Summary
Earnings Call Date: Mar 6, 2025 | % Change Since: -13.33% | Next Earnings Date: May 21, 2025
Earnings Call Sentiment Neutral
The earnings call reflected a mix of strong performance in certain segments such as luxury and strategic initiatives like store closures, alongside challenges in consumer environment and specific categories like home. The strategic progress and financial improvements are noteworthy, but the broader economic uncertainties and specific category weaknesses temper the overall outlook.Highlights
Strong Comp Performance
Macy's, Inc. achieved a 0.2% comparable sales gain in the fourth quarter, which was the highest of the year and best in 11 quarters. Go-forward Macy's, Inc. reported its strongest comp of the year at plus-0.6%.
Luxury Segment Growth
Bloomingdale's achieved a positive 6.5% comp, marking the strongest fourth quarter volume in its history. Bluemercury reported its 16th consecutive quarter of positive comps.
Progress in Store Closures and Capital Allocation
Closed 64 underperforming Macy's stores ahead of the annual plan and generated $283 million of asset monetization proceeds, contributing to $679 million of free cash flow, up 71% from last year.
Improved Financial Metrics
Fourth quarter adjusted EPS was $1.80, above the guidance range, driven by better-than-expected SG&A, credit card revenues, and improved shortage and asset sale gains.
Lowlights
Decline in Macy's Nameplate Comps
Total Macy's nameplate comps declined 0.9% in the fourth quarter, despite a 380 basis point improvement from the prior year.
Pressure in Home Category
The home business at Macy's faced pressure due to interest rates and competitive landscape, highlighting the need for a refresh in this category.
Uncertain Consumer Environment
Concerns about consumer health due to inflation, housing costs, and food prices contribute to an uncertain environment for retail.
Company Guidance
During Macy's fourth quarter 2024 earnings call, the company provided several key metrics and insights into its performance and outlook. Macy's reported a 0.2% increase in comparable sales, the highest in 11 quarters, with the go-forward Macy's locations achieving a 0.6% comp gain. The company's net sales were approximately $7.8 billion, and they ended the fiscal year with $1.3 billion in cash, up $272 million from the previous year. Macy's also generated $679 million in free cash flow, inclusive of $283 million from asset monetization. The annual comps improved by 510 basis points, although they were still down 0.9% compared to 2023. The company closed 64 of its 150 non-go-forward Macy's stores, which contributed to annual asset sale gains of $144 million. Additionally, Macy's lowered its capital expenditures by $111 million to $882 million. For fiscal 2025, Macy's projects net sales of $21 billion to $21.4 billion, with comparable sales expected to decline between 2% and 0.5%. The company plans to continue reducing capital expenditures while prioritizing investments that enhance profitability and stakeholder value.Macy's Corporate Events
Executive/Board ChangesBusiness Operations and Strategy
Macy’s Announces Leadership Changes in Bold New Chapter
Positive
Apr 1, 2025
On April 1, 2025, Macy’s, Inc. announced significant changes to its executive leadership team as part of its ‘Bold New Chapter’ strategy aimed at returning the company to long-term profitable growth. Thomas J. Edwards, Jr. will join Macy’s as Chief Operating Officer and Chief Financial Officer effective June 22, 2025, succeeding Adrian V. Mitchell. Edwards brings extensive experience from Capri Holdings Limited and is expected to drive innovation and optimize operations at Macy’s. The leadership evolution also includes new reporting structures for key executives like Barbie Cameron and Maly Bernstein, aligning with Macy’s strategic focus on strengthening and modernizing its operations to enhance customer experience and shareholder value.
Executive/Board ChangesBusiness Operations and Strategy
Macy’s Appoints Robert Chavez to Board of Directors
Positive
Jan 6, 2025
Macy’s, Inc. has appointed Robert Chavez, a seasoned retail executive with extensive experience in the luxury segment, as an independent director on its Board of Directors, effective April 1, 2025. Chavez’s appointment is a strategic move to leverage his expertise in e-commerce and retail expansion as Macy’s aims to enhance market share and shareholder value, while Sara Levinson will retire from the board in accordance with corporate governance principles.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.