Q3 2025 Earnings Summary
Reported on Mar 10, 2025 (Before Market Open)
Pre-Earnings Price$16.72Last close (Dec 10, 2024)
Post-Earnings Price$14.90Open (Dec 11, 2024)
Price Change
$-1.82(-10.89%)
- Macy's successful "First 50" initiative has led to three consecutive quarters of positive comparable store sales growth, with First 50 locations posting a positive 1.9% comp in the third quarter, outperforming the total Macy's nameplate by 410 basis points. The company plans to expand this program in 2025, indicating potential for broader revenue growth. ,
- The closure of approximately 65 underperforming stores this year is expected to improve profitability by focusing on more productive locations. These closures are generating asset sale gains, with expected monetization proceeds of approximately $275 million, nearly double the initial plan, providing capital for investment and shareholder returns. ,
- Bloomingdale's and Bluemercury continue to deliver strong performance, with Bloomingdale's comp sales rising 3.2% and Bluemercury achieving its 15th consecutive quarter of positive comps, indicating that the company's luxury segment is contributing positively to overall growth. ,
- Macy's is experiencing deterioration in merchandise margins due to adverse product mix resulting from weather impact and a competitive environment, which may continue to pressure profitability.
- The company is increasing store closures from 55 to approximately 65 this year, indicating ongoing challenges in certain locations and potential negative impact on overall sales despite management's optimism about limited impact. ,
- Higher sales penetration of clearance items and a value-oriented customer base may pressure margins as the company navigates a competitive discretionary environment, potentially affecting profitability.