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Macy's
(NYSE:M)
Select Model
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Rating:67Neutral
Price Target:
$26.00
▲(15.10% Upside)
Action:Reiterated
Date:10/23/26
The score is driven primarily by mixed financial performance—still profitable with solid free cash flow, but weighed down by a sharp TTM revenue decline and meaningful leverage. Offsetting this, technicals are supportive with the stock trading above key moving averages and positive MACD, while valuation is appealing (low P/E and ~3.2% yield). The latest earnings call further supports the score due to raised full-year guidance and improving profitability/cash flow, tempered by cautious Q3 comps and continued cost/headwind risks.
Positive Factors
Multi-brand comparable sales growth
Positive comparable sales across Macy’s, Bloomingdale’s, and Bluemercury indicate improving customer demand across multiple retail concepts rather than reliance on one banner. Continued growth across channels and categories can support more durable revenue stabilization and strengthen the company’s brand portfolio.
Negative Factors
Severe top-line contraction
A sharp trailing-twelve-month revenue decline signals that Macy’s remains exposed to a difficult department-store demand environment. Even with positive profitability, a smaller sales base can limit operating leverage, weaken purchasing scale, and make sustained margin recovery more difficult.
Read all positive and negative factors
Positive Factors
Negative Factors
Multi-brand comparable sales growth
Positive comparable sales across Macy’s, Bloomingdale’s, and Bluemercury indicate improving customer demand across multiple retail concepts rather than reliance on one banner. Continued growth across channels and categories can support more durable revenue stabilization and strengthen the company’s brand portfolio.
Read all positive factors
Macy's Key Performance Indicators (KPIs)
Any
Revenue by Type
Analyzes income from different sources such as retail sales, online sales, and services, highlighting diversification and areas of growth or decline.
Analyzes income from different sources such as retail sales, online sales, and services, highlighting diversification and areas of growth or decline.
Data provided by:
The Fly
The FlyMacy's (M) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$6.29B
Dividend Yield3.14%
Average Volume (3M)6.84M
Price to Earnings (P/E)8.6
Beta (1Y)0.96
Revenue Growth0.34%
EPS Growth58.61%
CountryUS
Employees90,134
SectorConsumer Cyclical
Sector Strength84
IndustryDepartment Stores
Share Statistics
EPS (TTM)2.79
Shares Outstanding261,176,640
10 Day Avg. Volume6,873,068
30 Day Avg. Volume6,837,371
Financial Highlights & Ratios
PEG Ratio0.66
Price to Book (P/B)1.11
Price to Sales (P/S)0.24
P/FCF Ratio5.13
Enterprise Value/Market Cap1.68
Enterprise Value/Revenue0.46
Enterprise Value/Gross Profit1.28
Enterprise Value/Ebitda5.18
Forecast
1Y Price Target
$22.88Price Target Upside1.26% Upside
Rating ConsensusHold
Number of Analyst Covering10
EPS Forecast (FY)2.32
Revenue Forecast (FY)$21.78B
Macy's Business Overview & Revenue Model
Company Description
Macy's, Inc. is a prominent retail enterprise that employs an omnichannel strategy, serving customers through its extensive network of physical department stores, dedicated e-commerce websites, and convenient mobile applications. The company offer...
How the Company Makes Money
Macy’s makes money primarily by selling merchandise to consumers through its stores and e-commerce sites. The largest revenue stream is retail net sales from owned and licensed product categories such as apparel and accessories, beauty/cosmetics (...
Macy's Earnings Call Summary
Earnings Call Date:Sep 10, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Nov 12, 2026
Earnings Call Sentiment Positive
The call was strongly constructive: second-quarter sales, comparable sales, EBITDA, EPS, cash flow, and the full-year outlook all improved, while Macy's, Bloomingdale's, and Bluemercury each delivered comparable-sales growth. The company also reported progress in Reimagined stores, brand expansion, AI, supply chain, and customer engagement. Offsetting issues included a cautious third-quarter comparable-sales outlook, softer big-ticket and select apparel categories, lower conversion, continued tariff and fuel exposure, and near-term investment levels. Highlights significantly outweighed the lowlights.Positive Updates
Second-Quarter Results Exceeded Guidance
Macy's, Inc. reported revenue growth, comparable sales increases across all nameplates and channels, and better-than-expected performance across key financial metrics. Net sales, comparable sales, adjusted EBITDA, and adjusted diluted EPS all exceeded guidance.
Negative Updates
Third-Quarter Comparable Sales Outlook Is Flat to Slightly Down
Third-quarter guidance calls for comparable sales of down 0.5% to up 0.5%, against a 3.2% comparable-sales comparison. Net sales are expected to be $4.65 billion to $4.7 billion, and adjusted diluted EPS is expected to be a loss of $0.19 to $0.23.
Read all updates
Q2-2026 Updates
Positive
Negative
Second-Quarter Results Exceeded Guidance
Macy's, Inc. reported revenue growth, comparable sales increases across all nameplates and channels, and better-than-expected performance across key financial metrics. Net sales, comparable sales, adjusted EBITDA, and adjusted diluted EPS all exceeded guidance.
Read all positive updates
Company Guidance
The company raised its full year outlook, expecting third quarter net sales of $4.65 billion to $4.7 billion, comparable sales of down 0.5% to up 0.5%, adjusted EBITDA as a percent of total revenue of 3.7% to 4.0%, and adjusted diluted EPS of a loss of $0.19 to $0.23; for the full year, net sales are expected at $21.675 billion to $21.825 billion, comparable sales of up 1.0% to up 1.5%, other revenue of $920 million, gross margin as a percent of net sales of 38.5% to 38.7%, SG and A up 1.5% to 2.25% on a dollar basis compared to last year, adjusted EBITDA as a percent of total revenue of 7.8% to 8.0%, interest expense of roughly $90 million, and adjusted diluted EPS of $2.15 to $2.35; full year combined tariff and fuel gross margin net headwind is forecast at 5 to 15 basis points, compared to prior guidance of 20 to 30 basis points, and disciplined reinvestment of tariff refunds nets to approximately $0.18 of EPS in the second half of 26.Macy's Financial Statement Overview
Summary
Income Statement
56
Neutral
Balance Sheet
62
Positive
Cash Flow
58
Neutral
| Breakdown | TTM | Jan 2026 | Jan 2025 | Jan 2024 | Jan 2023 | Jan 2022 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 22.78B | 22.62B | 23.01B | 23.87B | 25.45B | 25.40B |
| Gross Profit | 8.21B | 8.27B | 9.27B | 9.64B | 10.10B | 10.44B |
| EBITDA | 2.04B | 1.84B | 1.76B | 1.07B | 2.50B | 3.00B |
| Net Income | 749.00M | 642.00M | 582.00M | 45.00M | 1.15B | 1.43B |
Balance Sheet | ||||||
| Total Assets | 15.73B | 16.24B | 16.40B | 16.25B | 16.87B | 17.59B |
| Cash, Cash Equivalents and Short-Term Investments | 1.29B | 1.25B | 1.31B | 1.03B | 862.00M | 1.71B |
| Total Debt | 5.09B | 5.20B | 5.71B | 5.98B | 6.40B | 6.83B |
| Total Liabilities | 10.80B | 11.38B | 11.85B | 12.21B | 12.78B | 13.97B |
| Stockholders Equity | 4.93B | 4.86B | 4.55B | 4.04B | 4.08B | 3.62B |
Cash Flow | ||||||
| Free Cash Flow | 1.49B | 1.06B | 760.00M | 312.00M | 320.00M | 2.12B |
| Operating Cash Flow | 1.76B | 1.43B | 1.28B | 1.30B | 1.61B | 2.71B |
| Investing Cash Flow | -663.00M | -639.00M | -592.00M | -913.00M | -1.17B | -370.00M |
| Financing Cash Flow | -632.00M | -852.00M | -413.00M | -220.00M | -1.30B | -2.38B |
Macy's Technical Analysis
Positive
22.59
Price Trends
22.63
Positive
23.23
Positive
21.33
Positive
Market Momentum
0.36
Negative
61.32
Neutral
72.68
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For M, the sentiment is Positive. The current price of 22.59 is below the 20-day moving average (MA) of 23.16, below the 50-day MA of 22.63, and above the 200-day MA of 21.33, indicating a bullish trend. The MACD of 0.36 indicates Negative momentum. The RSI at 61.32 is Neutral, neither overbought nor oversold. The STOCH value of 72.68 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for M.
Macy's Risk Analysis
Macy's disclosed 29 risk factors in its most recent earnings report. Macy's reported the most risks in the "Production" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Macy's Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
81 Outperform | $6.61B | 13.11 | 39.59% | 6.86% | 4.73% | 8.69% | |
79 Outperform | $7.41B | 13.32 | 20.72% | ― | 11.01% | 24.97% | |
70 Outperform | $10.87B | 14.71 | 34.24% | 4.48% | 0.21% | 20.42% | |
69 Neutral | $2.40B | 10.63 | 46.91% | 9.45% | 6.22% | 8.74% | |
67 Neutral | $6.29B | 8.63 | 15.81% | 3.14% | 0.34% | 58.61% | |
66 Neutral | $2.79B | 10.19 | 6.68% | 2.03% | -2.87% | 28.86% | |
61 Neutral | $18.38B | 12.79 | -2.54% | 3.03% | 1.52% | -15.83% |
* Consumer Cyclical Sector Average
M
Macy's
24.10
5.39
28.77%
ANF
Abercrombie Fitch
155.82
81.91
110.82%
BKE
Buckle
46.54
-4.30
-8.46%
DDS
Dillard's
695.68
106.21
18.02%
KSS
Kohl's
24.58
8.69
54.70%
URBN
Urban Outfitters
86.55
18.87
27.88%
Macy's Corporate Events
Business Operations and StrategyExecutive/Board Changes
Macy’s Announces Planned Board Leadership Transition and Changes
Positive
Oct 23, 2026
On October 23, 2026, Macy’s, Inc. reported that long‑time director Paul C. Varga would resign from its Board of Directors effective December 11, 2026, concluding a tenure that began in 2012 and included service as Lead Independent Dire...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.