Macy’s Beats Q4 Estimates, Shares Jump 5% as Tariffs Compress Margins
Macy’s Q4 adjusted EPS of $1.67 topped the $1.56 consensus, lifting shares about 5%. Bloomingdale’s delivered 9.9% comparable holiday sales gain, but gross margins fell 50 basis points from a 60-bps tariff headwind, and 2026 EPS guidance of $1.90–$2.10 lags consensus.
1. Q4 Earnings Beat and Stock Reaction
Macy’s Q4 adjusted EPS of $1.67 surpassed the $1.56 consensus, driving shares up roughly 5% in trading. The earnings beat was fueled by stronger same-store sales and disciplined cost management across the department store chain.
2. Record Holiday Comparable Sales
Bloomingdale’s recorded a 9.9% gain in comparable holiday sales, its best-ever holiday performance, while Macy’s comparable sales also showed solid sequential improvement. The strength was attributed to higher foot traffic and robust online promotions during the peak shopping season.
3. Tariff Impact and Margin Compression
Macy’s gross margins contracted by 50 basis points in Q4, largely due to approximately 60 basis points of tariff headwinds on imported merchandise. Elevated shipping costs and shifts in product mix further weighed on profitability.
4. 2026 Guidance and Risk Factors
For fiscal 2026, Macy’s issued adjusted EPS guidance of $1.90–$2.10, below the $2.17 consensus, citing ongoing macroeconomic uncertainty and geopolitical tensions. Management flagged potential pressure from cost inflation and volatility in consumer spending patterns.