Macy’s, Inc. Q1 2025 Summary: Better Than Expected Results, Reaffirmed Outlook

Macy’s, Inc. reported Q1 2025 net sales of $4.6 billion, surpassing prior guidance, though still down 5.1% year-over-year due to store closures. GAAP diluted EPS was $0.13, and adjusted EPS was $0.16, beating expectations.

Segment performance:
• Macy’s comparable sales: down 2.9% (owned), down 2.1% (owned + licensed + marketplace)
• Bloomingdale’s: up 3.0% and 3.8%
• Bluemercury: up 1.5% (17th straight positive quarter)
• “Reimagine 125” store locations outperformed the broader Macy’s fleet.

Margins and cash flow:
• Gross margin: 39.2% (flat)
• Adjusted EBITDA: $324 million (down from $364M)
• Cash flow from operations: -$64 million
• Cash balance: $932 million
• Total debt: $2.8 billion

Shareholder returns:
• $51 million in dividends
• $101 million in share buybacks
• $1.3 billion remains under repurchase authorization

2025 outlook (unchanged net sales guidance):
• Net sales: $21.0B–$21.4B
• Adjusted EPS: lowered to $1.60–$2.00 from $2.05–$2.25
• Adjusted EBITDA margin: lowered to 7.4%–7.9%

CEO Tony Spring reaffirmed the company’s strategy and confidence in its turnaround plan despite macro challenges and a competitive landscape.