Macy's (M) Stock Forecast & Price Target

Macy's demonstrated a modest yet positive revenue growth, with total company revenue increasing 0.2% year-over-year to $4.913 billion, while Other Revenue surged 24.2% to $200 million, highlighting the company's ability to diversify its income streams. Notably, Bloomingdale's achieved an impressive 8.6% sales growth year-over-year, supported by strong comparable sales increases on both owned and licensed bases, reinforcing the brand's strong market appeal. Additionally, Macy's Media Network revenue growth and improved customer sentiment, as evidenced by record net promoter scores, signify a promising trajectory for future performance and customer engagement.

Macy's has revised its fourth-quarter EPS outlook downward, incorporating a significantly reduced asset sale gain and projecting net sales to decline by 3%-5% compared to the prior year. Store rationalization has severely impacted sales, contributing to a loss of over 300 basis points in net sales due to the closure of 64 stores, reflecting ongoing challenges in maintaining revenue stability. Furthermore, anticipated tariff-related pressures are expected to adversely affect FY25 EPS, compounding the negative outlook on the company's financial health.