Macy's(US:M)2025-12-03 11:59Financial Performance - Macy's, Inc. reported net sales of $4.7 billion, a decrease of 0.6% compared to the third quarter of 2024, with comparable sales up 2.5% on an owned basis and up 3.2% on an O+L+M basis[4] - Adjusted diluted EPS was $0.09, exceeding the company's prior guidance range, driven by better-than-expected net sales and gross margin[4] - Bloomingdale's achieved comparable sales growth of 8.8% on an owned basis and 9.0% on an O+L+M basis, marking the highest growth in 13 quarters[4] - Total revenue for the 39 weeks ended November 1, 2025, was $14,705 million, down from $14,999 million in the prior year[28] - Net income for the 39 weeks ended November 1, 2025, was $135 million, compared to $240 million for the same period in 2024, reflecting a decrease of 43.8%[28] - Basic earnings per share for the 39 weeks ended November 1, 2025, were $0.50, down from $0.86 in the previous year[28] - The company's Adjusted EBITDA for the 39 weeks ended November 1, 2025, was $1,002 million, compared to $1,074 million for the same period in 2024, reflecting a decrease of 6.7%[51] - For the 13 weeks ended November 1, 2025, Macy's, Inc. reported a 2.5% increase in comparable sales on an owned basis and a 3.2% increase on an owned-plus-licensed-plus-marketplace basis[46] Guidance and Expectations - The company revised its annual guidance, expecting net sales between $21.475 billion and $21.625 billion, up from the previous range of $21.15 billion to $21.45 billion[15] - Comparable owned-plus-licensed-plus-marketplace sales are expected to be flat to up approximately 0.5% versus 2024, an improvement from the previous guidance of down approximately 1.5% to down approximately 0.5%[16] Expenses and Margins - The gross margin rate was 39.4%, a decline of 20 basis points, primarily due to a 50 basis point tariff impact[5] - Selling, general and administrative expenses decreased by $40 million to $2.0 billion, reflecting cost containment efforts[6] - Gross margin for the 39 weeks ended November 1, 2025, was $5,575 million, representing 39.5% of total revenue, compared to $5,776 million or 39.8% in 2024[28] Cash and Debt Management - The company ended the quarter with cash and cash equivalents of $447 million and total debt of $2.4 billion, with no material long-term debt maturities until 2030[10] - Cash and cash equivalents at the end of the period were $447 million, a decrease from $1,306 million at the beginning of the period[30] - The company reported a net cash provided by operating activities of $247 million for the 39 weeks ended November 1, 2025, compared to a net cash used of $30 million in the prior year[33] - The company incurred interest expense of $77 million for the 39 weeks ended November 1, 2025, down from $94 million in the previous year[28] - The company reported a loss on extinguishment of debt of $33 million for the 39 weeks ended November 1, 2025, compared to a loss of $1 million in the prior year[28] Inventory and Other Costs - Merchandise inventories increased to $6,298 million as of November 1, 2025, from $4,468 million in February 2025[30] - For the 13 weeks ended November 1, 2025, the company reported an impairment, restructuring, and other costs of $4 million, compared to a benefit of $23 million for the same period in 2024[51] Shareholder Returns - The company returned approximately $99 million to shareholders, including $49 million in cash dividends and $50 million in share repurchases[4] Tax and Other Financial Metrics - The effective income tax expense for the 39 weeks ended November 1, 2025, was $52 million, or 26.6% of pretax income, compared to $87 million, or 20.0% of pretax income for the same period in 2024[3] - Restricted cash was reported at $2 million as of November 1, 2025, compared to $3 million as of November 2, 2024[5] - The company does not provide reconciliations for forward-looking non-GAAP measures due to the difficulty in estimating excluded items[41]