Macy’s Q4 earnings beat driven by Bloomingdale’s sales growth

Core Insights - Macy's, Inc. reported better-than-expected Q4 earnings, with shares rising approximately 5% following the announcement [2] - The company achieved adjusted earnings per share (EPS) of $1.67, surpassing the consensus estimate of $1.56 [3] - Revenue for the quarter was $7.64 billion, a decrease of about 1.7% year-over-year, but exceeding estimates of around $7.5 billion [4] Sales Performance - Comparable sales grew by 1.8%, exceeding guidance, while go-forward comparable sales increased by 2% [5] - Bloomingdale's experienced a notable 9.9% growth in comparable sales, while Macy's Reimagine initiative contributed 0.9% and Bluemercury saw a 1.3% increase [6] - For the full year, Macy's returned to positive comparable sales growth of 1.5% and delivered an adjusted EPS of $2.32, above the prior guidance range of $2 to $2.20 [6] Future Guidance - Macy's provided fiscal year 2026 guidance of net sales between $21.4 billion and $21.65 billion, with adjusted EPS projected between $1.90 and $2.10 [7] - The company emphasized a continued focus on comparable sales growth and shareholder returns [7] Analyst Insights - Jefferies analysts viewed the results as a strong end to the year, noting that net sales, adjusted EPS, and adjusted EBITDA of $840 million all exceeded Street estimates [8] - Inventory was down 1% year-over-year, and credit card revenue increased by 17% to $205 million, representing 2.7% of sales [8] Considerations for Investors - Initial fiscal 2026 guidance was noted to be below Street estimates due to accounting changes, store closures, and macroeconomic caution [9] - While Q1 comparable sales guidance is above consensus, EPS is expected to be below Street estimates, with margins potentially pressured as SG&A is projected to grow by 1% to 2% for the year [9] - Key points for investors to monitor include monthly Q4 sales performance, Q1 EPS commentary, strategic sales initiatives, store closures, credit card revenue trends, tariff mitigation, promotional activity, SG&A leverage, average unit retail trends, and Bloomingdale's expansion opportunities [10]