Macy's (M) Stock Forecast & Price Target

Macy's has demonstrated a positive financial trajectory, with a 6.2% increase in comparable sales on an owned basis, marking the sixteenth consecutive quarter of growth. Furthermore, the strength of Macy's Media Network is evident through a 6.7% rise in revenue to $64 million, driven by increased advertiser engagement. Additionally, a robust credit portfolio and initiatives to boost credit card usage have led to expected other revenues of $835 million to $845 million, showcasing improved financial stability and growth potential.

Macy's reported a gross margin contraction of 80 basis points to 35.7%, falling short of analyst expectations, indicating potential challenges in maintaining profitability amidst a competitive retail landscape. Additionally, a significant 10.3% year-over-year decline in credit card revenues, driven by lower profit sharing, reflects reduced consumer spending and engagement. The company's overall net sales decreased by 4.3% during the quarter, contrasting with previous growth, while revised earnings per share (EPS) expectations for FY25 have been reduced to $2.15 from $2.40, signaling deteriorating financial performance and outlook.