Core Insights - Macy's Inc. has strengthened its luxury-led growth profile in Q3 of fiscal 2025, with Bloomingdale's showing significant performance under the Bold New Chapter strategy, achieving an 8.6% comparable sales increase, marking its fifth consecutive quarter of growth and the strongest performance in 13 quarters [1][9] Bloomingdale's Performance - Bloomingdale's growth was driven by strong demand in key categories such as ready-to-wear apparel, fine jewelry, shoes, and tabletop items, with the addition of high-profile designer brands enhancing its assortment and reputation [2] - Improved execution and elevated service levels contributed to a sequential increase in Net Promoter Scores, indicating stronger customer engagement [2] Earnings Stabilization - Bloomingdale's serves as a critical earnings stabilizer for Macy's, particularly as the core Macy's brand undergoes a longer-term turnaround, with its higher average unit retail and resilient affluent customer base helping to offset softness in mass categories [3][9] Bluemercury's Contribution - Bluemercury also posted positive comparable sales growth, driven by dermatological skincare and expanded brand partnerships, highlighting the importance of premium and luxury offerings in Macy's multi-brand strategy [4] Future Growth Plans - Macy's plans to build on Bloomingdale's momentum through targeted market expansion, continued digital investment, and selective rollout of small-format Bloomie's and outlet locations, aiming to leverage Bloomingdale's as a long-term growth engine [5] Valuation and Estimates - Macy's shares have surged 82.7% in the past six months, outperforming the industry's 62.1% growth [8] - The company is currently trading at a forward 12-month price-to-sales ratio of 0.29X, below the industry average of 0.52X [11] - The Zacks Consensus Estimate for Macy's fiscal 2025 earnings indicates an 18.2% year-over-year decline, while fiscal 2026 estimates suggest a 2.9% uptick, with recent upward revisions in earnings estimates for both fiscal years [12]

Financial Performance - Macy's Inc's net sales were $48 billion, a decrease of 25% compared to 2Q24, but an increase of 09% excluding store closures[38] - Comparable owned sales increased by 08% compared to 2Q24[39] - Comparable owned-plus-licensed-plus-marketplace (O+L+M) sales increased by 19% compared to 2Q24[41] - Go-Forward Business comparable O+L+M sales increased by 22% compared to 2Q24[43] - Adjusted diluted earnings per share (EPS) was $041[10], a decrease of 226% compared to 2Q24[49] Brand Performance - Macy's nameplate comparable O+L+M sales increased by 12% compared to 2Q24[48] - Macy's Go-Forward business comparable O+L+M sales increased by 15% compared to 2Q24[15] - Bloomingdale's comparable O+L+M sales increased by 57% compared to 2Q24[18] - Bluemercury comparable owned sales increased by 12% compared to 2Q24[23] Inventory and Operations - Inventory decreased by 08% compared to 2Q24[25] Capital Allocation - Dividend payments amounted to $100 million[53] - Share repurchases totaled $151 million[54] - Net long-term debt reduction of approximately $340 million was achieved[56] FY25 Guidance - Net sales are projected to be between $2115 billion and $2145 billion, representing a decrease of 15% to 05% compared to FY24[61] - Comparable O+L+M sales are expected to decrease by approximately 15% to 05% compared to FY24[61] - Adjusted EBITDA rate is projected to be between 74% and 79%[61] - Adjusted diluted EPS is projected to be between $170 and $205[61]