Macy's (M) Stock Forecast & Price Target

Macy's reported a slight 0.2% increase in total company revenue year-over-year, reaching $4.913 billion, with a more substantial improvement in Other Revenue, which surged 24.2% to $200 million. The company experienced significant growth in its Bloomingdale's division, with an 8.6% increase in sales and 19 consecutive quarters of comparable sales growth overall, indicating a positive trend in consumer demand. Furthermore, improvements in customer sentiment were highlighted by the highest third-quarter net promoter score on record, reflecting effective service and enhanced selling education initiatives.

Macy's has revised its EPS outlook downward due to a significant reduction in expected asset sale gains, which now reflect a drag of $0.05-$0.06 compared to prior estimates. The company anticipates net sales to decline by 3%-5% in the fourth quarter, attributable in part to the impact of store rationalization, which has negatively affected sales by over 300 basis points. Additionally, the ongoing tariff issues are projected to further reduce FY25 EPS estimates, contributing to an overall negative outlook for the retail giant.