Macy's Q1 2025 Financial Results – Net Sales Exceed Guidance

By Greg Peters • Wednesday, May 28 15:29 • Permanent Link

Macy’s, Inc. reported its first-quarter 2025 financial results, with net sales exceeding guidance at $4.6 billion, and comparable sales down 2.0% on an owned basis. Bloomingdale’s reported a notable comparable sales growth of 3.0%, while Bluemercury achieved its 17th consecutive quarter of comparable sales growth at 1.5%.

The company’s GAAP diluted earnings per share (EPS) was $0.13, while adjusted diluted EPS was $0.16, both surpassing the prior guidance range. Macy’s, Inc. returned approximately $152 million to shareholders, consisting of $51 million in quarterly cash dividends and $101 million of share repurchases.

In terms of net sales, Macy’s, Inc. saw a 5.1% decrease, with a notable increase in other revenue by 26.0%, driven by credit card net revenues and Macy’s media network net revenue.

The gross margin rate remained flat at 39.2%, reflecting improved merchandise margin offset by higher delivery expense as a percent of net sales. Selling, general, and administrative expenses increased slightly by $2 million, and asset sale gains of $16 million increased by $15 million.

Adjusted EBITDA was reported at $324 million, or 6.8% of total revenue, compared to $364 million in the first quarter of 2024. Core adjusted EBITDA was $308 million, or 6.4% of total revenue, down from $363 million, or 7.3% of total revenue in the first quarter of 2024.

The company’s merchandise inventories decreased by 0.5% year-over-year, ending the first quarter with cash and cash equivalents of $932 million. Macy’s, Inc. also amended its asset-based credit facility to improve flexibility through revised terms.

Looking ahead, Macy’s, Inc. reaffirmed its annual net sales guidance and adjusted its annual outlook for 2025 based on factors such as tariffs, consumer discretionary spending, and a competitive promotional landscape. The company expects adjusted diluted EPS in the range of $1.60 to $2.00 for 2025.

The market has reacted to these announcements by moving the company's shares 0.66% to a price of $12.12. For more information, read the company's full 8-K submission here.

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