Macy’s Inc. posted comparable sales increases across its portfolio in the fourth quarter and wrapped up 2025 confident that its three-year strategy to return to growth is on track.

For the fourth quarter ended Jan. 31, Macy’s Inc.’s net sales, inclusive of store closures, decreased 1.7 percent to $7.6 billion. But comparable sales – considered a better measure of the company’s performance – rose 1.8 percent, and on a go-forward basis, there was comparable sales growth of 2 percent. Go-forward sales exclude stores that are being closed.

Executives said Q4 sales results, on a total and comparable basis, exceeded their guidance, and that the company returned to annual comparable sales growth in 2025. Last year, comparable sales were up 1.5 percent, while in 2024, comparable sales were down 0.9 percent.

Q4 adjusted earnings before interest, taxes, and depreciation and amortization (EBITDA) were $840 million, down from $903 million in the year-ago period. Core adjusted EBITDA was $837 million, versus $862 million in the year-ago period.

Net income rose to $507 million from $342 million in the year-ago period. Diluted earnings per share were $1.84, compared to $1.21 in the year-ago quarter.

The gross margin rate of 35.2 percent decreased 50 basis points primarily due to an approximate 60 basis point tariff impact, which was in-line with the company’s expectations.

“As we wrap up year two of the Bold New Chapter, I’m pleased with the growth and progress we’re making against our strategic priorities,” Tony Spring, chairman and chief executive officer of Macy’s Inc., said in a statement Wednesday. “At Macy’s, we are offering more relevant brands, stronger storytelling and investing in our colleagues so we can better serve the customer. Bloomingdale’s exceptional performance underscores its ability to elevate the customer experience and capture demand across premium contemporary to luxury businesses. Looking to 2026 and beyond, we are ready to build on our progress.”

Macy’s Bold New Chapter is a three-year strategy that was introduced in February 2024. It centers around closing about 150 Macy’s department stores, investing in healthy Macy’s stores, accelerating growth in the luxury sector and in online sales, expanding the brick-and-mortar footprints of Bloomie’s and Bluemercury, and monetizing assets, such as certain real estate holdings. Bloomie’s is the contemporary-oriented scaled down version of the full-line upscale Bloomingdale’s department stores.

By division, Macy’s net sales, inclusive of store closures, were down 3.2 percent. Comparable sales were up 0.4 percent. Macy’s go-forward comparable sales were up 0.6 percent.

The 125 “reimagined” Macy’s stores – those receiving significant investments for increased staffing in high-traffic areas such as women’s shoes and fitting room areas, fresher products and improved visuals – saw comparable sales rise 0.9 percent.

Another 75 stores will be “reimagined” this year, the company announced.

Bloomingdale’s net sales rose 8.5 percent; comparable sales rose 9.9 percent. The upscale department store is riding a string of quarterly comparable-store gains, has stepped up investments in renovations, and is capitalizing on disruption in the industry, notably the Saks Global bankruptcy.

Bluemercury’s net sales were up 2.5 percent; comparable sales grew 1.3 percent.

The corporation, taking a conservative view of macro economic and geopolitical conditions, is projecting sales of $21.4 billion to $21.65 billion for 2026, with comparable sales down 0.5 percent to up 0.5 percent. Adjusted diluted earnings per share are projected at $1.90 to $2.10

In 2025, net sales decreased 2.4 percent to $21.8 billion. Adjusted diluted earnings per share in 2025 were $2.15 in 2025.

Operating income rose to $1.03 billion, up from $909 million in 2024. Net income rose to $642 million from $582 million in 2024.

Gross margin rate of 38 percent declined 40 basis points. The decline was attributable to a 40 basis point tariff
impact and proactive markdowns on remaining early Spring product in the second quarter to maintain healthy
inventories and product bought under prior tariff rates

By division, Macy’s sales, including store closings, were down 3.8 percent; comparable sales rose 0.4 percent. The go-forward side of the business saw a comparable sales gain of 0.6 percent, and re-imagined stores posted comparable sales gains of 1 percent.

Bloomingdale’s sales rose 6.3 percent, with comparable sales up 7.4 percent. Bluemercury’s sales rose 2.6 percent, with comparable sales up 1.6 percent.