Macy's (M) Stock Forecast & Price Target

Macy's reported a slight revenue increase of 0.2% year-over-year, reaching $4.913 billion, with a significant improvement in Other Revenue, which surged 24.2% year-over-year to $200 million. The performance of Bloomingdale's was particularly strong, showcasing an 8.6% year-over-year increase in sales, with comparable sales growth of 8.8% on an owned basis. Additionally, growth in credit card revenues and Macy's Media Network further supports a positive outlook, with credit card revenues rising 3.4% year-over-year to $158 million and the Media Network revenue increasing by 0.9% year-over-year to $42 million.

Macy's has lowered its earnings per share outlook, now anticipating $1.35-$1.55, which includes a reduced asset sale gain of $15MM-$20MM compared to previous expectations. The company's projected net sales for the fourth quarter are expected to range from $7.35B to $7.50B, reflecting a decline of 3%-5% compared to the previous year. Additionally, ongoing tariff impacts are projected to negatively affect fiscal year 2025 earnings per share by $0.25-$0.35, exacerbating the challenges posed by a decline in sales across various quarters, including a 2.3% decrease in the third quarter and a 3.2% decrease in the fourth quarter.