Macy's Q3 Earnings Fall Short Despite Market Growth
New York, Wednesday, 3 December 2025.
Macy’s reported a Q3 profit of $0.44 per share, missing expectations, while the S&P 500 saw a 13.4% growth rate, underscoring challenges for retailers in a strong market.
Macy’s Struggles Amid Strong Economic Indicators
Macy’s Inc. (NYSE: M) reported a third-quarter profit of $0.44 per share, which fell short of analysts’ expectations, highlighting the company’s struggle amid a robust economic environment. In contrast, the S&P 500 has experienced a remarkable 13.4% growth for the third quarter of 2025, driven by strong performances across various sectors [1][2]. This disparity emphasizes the unique challenges retailers like Macy’s face, including changing consumer preferences and competitive pressures [3][4].
In-Depth Financial Performance
Despite the earnings miss, Macy’s reported net sales of $4.71 billion, slightly lower than the previous year’s $4.74 billion, yet surpassing the consensus expectation of $4.62 billion [1][5]. The company’s net income for the quarter was $11 million, a decrease from $28 million in the same period last year, reflecting ongoing struggles with store closures and evolving consumer behaviors [2][3]. Adjusted earnings per share stood at $0.09, surpassing the expected loss of $0.14 per share, indicating some resilience in its operations [4][5].
Strategic Initiatives and Future Outlook
Macy’s has been actively implementing its ‘Bold New Chapter’ strategy, aimed at stabilizing market share and enhancing store experiences. This strategy involves closing underperforming locations and reinvesting in promising areas, including its ‘Reimagine’ store initiative, which has shown a 2.7% growth in comparable sales [2][5]. Despite these efforts, CEO Tony Spring has expressed caution regarding the fourth quarter, citing selective consumer spending and potential impacts from higher tariffs as key challenges [2][4].
Market Reaction and Stock Performance
Following the release of its Q3 earnings, Macy’s stock saw a decline of over 5% during premarket trading, reflecting investor concerns about the retailer’s future amid a challenging retail landscape [5][6]. However, the stock has shown resilience throughout 2025, rising approximately 34% year-to-date, closing at $22.71 as of December 2, 2025 [2][4]. This performance suggests that while short-term challenges persist, there is optimism regarding Macy’s long-term strategic initiatives [3][6].