Macy's (FDO) AI Stock Analysis

Macy's

(Frankfurt:FDO)

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Positive Factors

Multi-brand comparable sales growthPositive 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 contractionA 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.

Macy's (FDO) vs. iShares MSCI Germany ETF (EWG)

Market Cap: EUR 6.30B
Dividend Yield: 3.09%
Average Volume (3M): 274
Price to Earnings (P/E): 8.6
Beta (1Y): 0.51
Revenue Growth: -6.30%
EPS Growth: 45.90%
Country: Germany
Employees: 90,134
Sector: Consumer Cyclical
Sector Strength: 61
Industry: Department Stores

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 offers a...

Macy's Earnings Call Summary

Earnings Call Date:Sep 09, 2026(Q2-2026)|% Change Since:12.90%|Next Earnings Date:Nov 11, 2026

Earnings Call SentimentPositive

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.

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 Risk Analysis

Macy's disclosed 29 risk factors in its most recent earnings report. Macy's reported the most risks in the "Production" category.

Production - Risks related to the company’s ability to manufacture goods and services

Latest Risks Added

0 New Risks

Macy's Peers Comparison

Overall Rating

UnderperformOutperform

Sector (61)

Financial Indicators

DE:FDO against its peers
Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
URBN	82Outperform	$7.77B	13.96	20.72%	―	11.01%	24.97%
ANF	81Outperform	$6.98B	13.85	39.59%	―	4.73%	8.69%
DDS	76Outperform	$10.02B	14.71	34.24%	4.87%	0.21%	20.42%
BKE	69Neutral	$2.39B	10.59	46.91%	9.49%	6.22%	8.74%
KSS	66Neutral	$2.76B	10.08	6.68%	2.06%	-2.87%	28.86%
Sector *	61Neutral	$18.38B	12.79	-2.54%	3.03%	1.52%	-15.83%

* Consumer Cyclical Sector Average

Performance Comparison

DE:FDO and its peers over the selected period
Ticker	Company Name	Price	Change	% Change
DE:FDO	Macy's	21.48	4.80	28.78%
ANF	Abercrombie & Fitch Company	164.44	94.29	134.41%
BKE	The Buckle Inc.	46.38	-4.26	-8.41%
DDS	Dillard's	641.24	65.07	11.29%
KSS	Kohl's Corporation	24.31	8.39	52.72%
URBN	Urban Outfitters	90.72	28.71	46.30%

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.

Macy's AI Stock Analysis