Revenue growth remains stagnant at 2.1% in 2026Q1, while operating margins remain highly constrained, frequently falling below 2% in non-holiday periods.
| Metric | TTM | Jan'26 | Feb'25 | Jan'24 | Jan'23 | Jan'22 | Jan'21 | Jan'20 | Jan'19 | Jan'18 | Jan'17 | Jan'16 | Jan'15 | Jan'14 | Jan'13 | Jan'12 | Jan'11 | Jan'10 | Jan'09 | Jan'08 | Jan'07 | Jan'06 | Jan'05 | Jan'04 | Jan'03 | Jan'02 | Jan'01 | Jan'00 | Jan'99 | Jan'98 | Jan'97 |
|---|
| Sales/Revenue | 22.72B | 22.62B | 23.01B | 23.87B | 25.45B | 25.4B | 18.1B | 25.33B | 25.74B | 25.64B | 26.56B | 27.08B | 28.11B | 27.93B | 27.69B | 26.41B | 25B | 23.49B | 24.89B | 26.31B | 26.97B | 22.39B | 15.78B | 15.26B | 15.44B | 15.65B | 16.64B | 16.03B | 15.37B | 15.22B | 15.23B |
| Revenue Growth % | -11.63% | -1.67% | -3.6% | -6.22% | 0.2% | 40.35% | -28.56% | -1.59% | 0.38% | -3.47% | -1.9% | -3.65% | 0.62% | 0.88% | 4.85% | 5.61% | 6.45% | -5.64% | -5.4% | -2.44% | 20.46% | 41.92% | 3.35% | -1.11% | -1.38% | -5.93% | 3.8% | 4.32% | 0.95% | -0.06% | 1.2% |
| Cost of Goods Sold | 14.42B | 14.35B | 13.74B | 14.22B | 15.35B | 14.96B | 12.29B | 15.17B | 15.21B | 15.18B | 15.67B | 16.5B | 16.86B | 16.73B | 16.54B | 15.74B | 14.82B | 13.97B | 15.01B | 15.68B | 16.2B | 13.3B | 9.38B | 9.1B | 9.26B | 9.53B | 9.96B | 9.58B | 8.59B | 8.59B | 8.79B |
| COGS % of Revenue | - | 63.45% | 59.72% | 59.6% | 60.3% | 58.88% | 67.89% | 59.89% | 59.11% | 59.21% | 58.97% | 60.92% | 60% | 59.88% | 59.73% | 59.6% | 59.29% | 59.49% | 60.3% | 59.58% | 60.06% | 59.39% | 59.47% | 59.61% | 59.96% | 60.9% | 59.83% | 59.74% | 55.89% | 56.44% | 57.75% |
| Gross Profit | 8.3B | 8.27B | 9.27B | 9.64B | 10.1B | 10.44B | 5.81B | 10.16B | 10.52B | 10.46B | 10.9B | 10.58B | 11.24B | 11.21B | 11.15B | 10.67B | 10.18B | 9.52B | 9.88B | 10.64B | 10.77B | 9.09B | 6.39B | 6.17B | 6.18B | 6.12B | 6.68B | 6.45B | 6.78B | 6.63B | 6.43B |
| Gross Margin % | 36.54% | 36.55% | 40.28% | 40.4% | 39.7% | 41.12% | 32.11% | 40.11% | 40.89% | 40.79% | 41.03% | 39.08% | 40% | 40.12% | 40.27% | 40.4% | 40.71% | 40.51% | 39.7% | 40.42% | 39.94% | 40.61% | 40.53% | 40.39% | 40.04% | 39.1% | 40.17% | 40.26% | 44.11% | 43.56% | 42.25% |
| Gross Profit Growth % | - | -10.78% | -3.9% | -4.55% | -3.27% | 79.71% | -42.81% | -3.46% | 0.61% | -4.02% | 2.98% | -5.86% | 0.32% | 0.52% | 4.51% | 4.79% | 6.97% | -3.71% | -7.08% | -1.27% | 18.48% | 42.21% | 3.71% | -0.24% | 0.98% | -8.42% | 3.56% | -4.79% | 2.23% | 3.03% | 2.95% |
| Operating Expenses | 7.29B | 7.24B | 8.36B | 9.34B | 8.41B | 8.09B | 10.29B | 9.19B | 8.79B | 8.6B | 9.53B | 8.54B | 8.44B | 8.53B | 8.49B | 8.26B | 8.29B | 8.45B | 14.26B | 8.77B | 8.94B | 6.67B | 4.99B | 4.82B | 4.84B | 5.02B | 4.99B | 4.76B | 5.32B | 5.29B | 5.54B |
| OpEx % of Revenue | - | 31.99% | 36.33% | 39.14% | 33.06% | 31.86% | 56.84% | 36.28% | 34.13% | 33.52% | 35.86% | 31.55% | 30.04% | 30.53% | 30.65% | 31.27% | 33.14% | 35.99% | 57.29% | 33.34% | 33.14% | 29.79% | 31.66% | 31.6% | 31.34% | 32.05% | 30% | 29.7% | 34.64% | 34.75% | 36.39% |
| Selling, General & Admin | 578.17B | 8.24B | 8.33B | 8.38B | 8.46B | 8.15B | 6.85B | 9.06B | 9.13B | 9.06B | 9.36B | 8.47B | 8.36B | 8.44B | 8.48B | 8.28B | 8.26B | 8.06B | 8.48B | 8.55B | 8.68B | 6.98B | 4.99B | 4.82B | 4.84B | 4.8B | 4.91B | 4.76B | 4.69B | 4.68B | 4.98B |
| SG&A % of Revenue | - | 36.43% | 36.21% | 35.09% | 33.25% | 32.1% | 37.86% | 35.75% | 35.46% | 35.33% | 35.22% | 31.27% | 29.73% | 30.22% | 30.64% | 31.36% | 33.04% | 34.32% | 34.07% | 32.51% | 32.18% | 31.17% | 31.66% | 31.6% | 31.34% | 30.68% | 29.52% | 29.7% | 30.54% | 30.74% | 32.71% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | -3M | -1B | 27M | 966M | -48M | -61M | 3.44B | 134M | -341M | -463M | 172M | 76M | 87M | 88M | 5M | -25M | 25M | 391M | 5.78B | 219M | 259M | -311M | 0 | 0 | 0 | 215M | 80M | 0 | 631M | 610M | 560M |
| Operating Income | 1.02B | 1.03B | 909M | 301M | 1.69B | 2.35B | -4.47B | 970M | 1.74B | 1.86B | 1.37B | 2.04B | 2.8B | 2.68B | 2.66B | 2.41B | 1.89B | 1.06B | -4.38B | 1.86B | 1.84B | 2.42B | 1.4B | 1.34B | 1.34B | 1.1B | 1.69B | 1.69B | 1.46B | 1.34B | 893M |
| Operating Margin % | 4.47% | 4.55% | 3.95% | 1.26% | 6.64% | 9.25% | -24.73% | 3.83% | 6.75% | 7.27% | 5.16% | 7.53% | 9.96% | 9.59% | 9.61% | 9.13% | 7.58% | 4.53% | -17.59% | 7.08% | 6.81% | 10.83% | 8.87% | 8.79% | 8.7% | 7.05% | 10.16% | 10.56% | 9.47% | 8.81% | 5.86% |
| Operating Income Growth % | - | 13.31% | 201.99% | -82.18% | -28.13% | 152.51% | -561.34% | -44.19% | -6.76% | 35.96% | -32.76% | -27.18% | 4.56% | 0.64% | 10.37% | 27.3% | 78.17% | 124.28% | -335% | 1.47% | -24.26% | 73.14% | 4.4% | -0.15% | 21.65% | -34.71% | -0.12% | 16.36% | 8.5% | 50.17% | -9.1% |
| EBITDA | 1.9B | 1.92B | 1.79B | 1.2B | 2.55B | 3.22B | -3.52B | 1.95B | 2.7B | 2.85B | 2.43B | 3.1B | 3.84B | 3.7B | 3.71B | 3.5B | 3.04B | 2.27B | -3.1B | 3.14B | 3.05B | 3.38B | 2.14B | 2.05B | 2.03B | 1.8B | 2.35B | 2.36B | 2.09B | 1.95B | 1.45B |
| EBITDA Margin % | 8.37% | 8.51% | 7.78% | 5.02% | 10% | 12.69% | -19.43% | 7.7% | 10.49% | 11.13% | 9.14% | 11.45% | 13.65% | 13.24% | 13.4% | 13.24% | 12.17% | 9.68% | -12.45% | 11.92% | 11.32% | 15.1% | 13.56% | 13.46% | 13.14% | 11.5% | 14.11% | 14.75% | 13.58% | 12.82% | 9.54% |
| EBITDA Growth % | -7.31% | 7.49% | 49.42% | -52.95% | -21.03% | 191.7% | -280.22% | -27.74% | -5.43% | 17.54% | -21.65% | -19.19% | 3.73% | -0.32% | 6.12% | 14.85% | 33.92% | 173.32% | -198.85% | 2.75% | -9.7% | 57.94% | 4.19% | 1.28% | 12.67% | -23.34% | -0.68% | 13.33% | 6.92% | 34.27% | -3.28% |
| D&A (Non-Cash Add-back) | 885M | 894M | 881M | 897M | 857M | 874M | 959M | 981M | 962M | 991M | 1.06B | 1.06B | 1.04B | 1.02B | 1.05B | 1.08B | 1.15B | 1.21B | 1.28B | 1.27B | 1.22B | 956M | 740M | 713M | 685M | 696M | 657M | 671M | 631M | 610M | 560M |
| EBIT | 1.05B | 946M | 878M | 178M | 1.64B | 2.13B | -4.5B | 938M | 1.69B | 1.85B | 1.35B | 2.06B | 2.8B | 2.69B | 2.55B | 2.44B | 1.86B | 1.1B | -4.35B | 2.08B | 2.29B | 2.59B | 1.4B | 1.34B | 1.34B | 1.27B | 1.77B | 1.69B | 1.46B | 1.34B | 893M |
| Net Interest Income | -95M | -97M | -115M | -135M | -162M | -256M | -285M | -185M | -236M | -310M | -363M | -361M | -393M | -388M | -422M | -443M | -508M | -556M | -560M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 3M | 4M | 25M | 32M | 20M | 26M | 23M | 14M | 17M | 22M | 27M | 36M | 39M | 28M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 95M | 97M | 115M | 135M | 162M | 259M | 289M | 210M | 268M | 330M | 389M | 384M | 407M | 405M | 444M | 470M | 544M | 595M | 588M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | -142M | -181M | -146M | -258M | -212M | -484M | -315M | -242M | -318M | -348M | -406M | -361M | -410M | -388M | -559M | -443M | -574M | -556M | -560M | -543M | -390M | -380M | -284M | -257M | -295M | -324M | -321M | -307M | -292M | -383M | -452M |
| Pretax Income | 874M | 849M | 763M | 43M | 1.48B | 1.87B | -4.79B | 728M | 1.42B | 1.52B | 965M | 1.68B | 2.39B | 2.29B | 2.1B | 1.97B | 1.32B | 507M | -4.94B | 1.32B | 1.45B | 2.04B | 1.12B | 1.08B | 1.05B | 780M | 1.37B | 1.39B | 1.16B | 958M | 441M |
| Pretax Margin % | 3.85% | 3.75% | 3.32% | 0.18% | 5.8% | 7.35% | -26.47% | 2.87% | 5.52% | 5.91% | 3.63% | 6.2% | 8.5% | 8.2% | 7.59% | 7.45% | 5.28% | 2.16% | -19.84% | 5.02% | 5.36% | 9.13% | 7.07% | 7.1% | 6.79% | 4.98% | 8.23% | 8.65% | 7.57% | 6.29% | 2.9% |
| Income Tax | 207M | 207M | 181M | -2M | 331M | 436M | -846M | 164M | 322M | -39M | 346M | 608M | 864M | 804M | 767M | 712M | 473M | 178M | -135M | 411M | 458M | 671M | 427M | 391M | 410M | 262M | 549M | 561M | 478M | 383M | 175M |
| Effective Tax Rate % | 23.68% | 24.38% | 23.72% | -4.65% | 22.41% | 23.37% | 17.66% | 22.53% | 22.68% | -2.57% | 35.85% | 36.23% | 36.15% | 35.11% | 36.49% | 36.18% | 35.83% | 35.11% | 2.73% | 31.14% | 31.67% | 32.83% | 38.26% | 36.07% | 39.12% | 33.59% | 40.07% | 40.48% | 41.1% | 39.98% | 39.68% |
| Net Income | 667M | 642M | 582M | 45M | 1.15B | 1.43B | -3.94B | 564M | 1.11B | 1.57B | 627M | 1.07B | 1.53B | 1.49B | 1.33B | 1.26B | 847M | 329M | -4.8B | 893M | 995M | 1.41B | 689M | 693M | 818M | -276M | -184M | 795M | 662M | 536M | 266M |
| Net Margin % | 2.94% | 2.84% | 2.53% | 0.19% | 4.5% | 5.63% | -21.79% | 2.23% | 4.3% | 6.11% | 2.36% | 3.96% | 5.43% | 5.32% | 4.82% | 4.76% | 3.39% | 1.4% | -19.3% | 3.39% | 3.69% | 6.28% | 4.37% | 4.54% | 5.3% | -1.76% | -1.11% | 4.96% | 4.31% | 3.52% | 1.75% |
| Net Income Growth % | -11.07% | 10.31% | 1193.33% | -96.07% | -19.86% | 136.26% | -799.29% | -49.1% | -29.25% | 149.76% | -41.51% | -29.75% | 2.69% | 11.31% | 6.29% | 48.29% | 157.45% | 106.85% | -637.85% | -10.25% | -29.23% | 104.06% | -0.58% | -15.28% | 396.38% | -50% | -123.14% | 20.09% | 23.51% | 101.5% | 256.57% |
| Net Income (Continuing) | 667M | 642M | 582M | 45M | 1.15B | 1.43B | -3.94B | 564M | 1.1B | 1.55B | 619M | 1.07B | 1.53B | 1.49B | 1.33B | 1.26B | 847M | 329M | -4.8B | 909M | 988M | 1.37B | 689M | 693M | 638M | 518M | 821M | 825M | 685M | 575M | 266M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -16M | 7M | 33M | 0 | 0 | 180M | -784M | -1B | -30M | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -12M | -1M | 3M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 2.45 | 2.32 | 2.07 | 0.16 | 4.19 | 4.55 | -12.68 | 1.81 | 3.56 | 5.10 | 2.02 | 3.22 | 4.22 | 3.86 | 3.24 | 2.92 | 1.98 | 0.78 | -11.40 | 1.97 | 1.81 | 3.24 | 1.93 | 1.86 | 2.06 | -0.69 | -0.45 | 1.81 | 1.48 | 1.21 | 0.62 |
| EPS Growth % | -9.38% | 12.08% | 1193.75% | -96.18% | -7.91% | 135.88% | -800.55% | -49.16% | -30.2% | 152.48% | -37.27% | -23.7% | 9.33% | 19.14% | 10.96% | 47.47% | 153.85% | 106.84% | -678.68% | 8.84% | -44.14% | 67.88% | 3.76% | -9.71% | 398.55% | -53.33% | -124.86% | 22.3% | 22.31% | 95.16% | 210% |
| EPS (Basic) | - | 2.37 | 2.10 | 0.16 | 4.28 | 4.66 | -12.68 | 1.82 | 3.60 | 5.13 | 2.03 | 3.26 | 4.30 | 3.93 | 3.29 | 2.96 | 2.00 | 0.78 | -11.40 | 2.00 | 1.84 | 3.30 | 1.97 | 1.88 | 2.08 | -0.71 | -0.45 | 1.89 | 1.58 | 1.28 | 0.64 |
| Diluted Shares Outstanding | 272.7M | 276.5M | 281.6M | 278.2M | 281.1M | 314M | 311.1M | 311.4M | 311.4M | 306.8M | 310.8M | 333M | 361.7M | 384.8M | 412.2M | 430.4M | 427.3M | 423.2M | 421.2M | 451.8M | 547.7M | 434.6M | 356.99M | 373.58M | 397.4M | 399.2M | 413.48M | 439.2M | 447.3M | 444.81M | 429.03M |
| Basic Shares Outstanding | 264.4M | 270.6M | 281.16M | 274.2M | 274.7M | 306.8M | 311.1M | 309.7M | 307.7M | 305.4M | 308.5M | 328.4M | 355.2M | 378.3M | 405.5M | 424.5M | 423.3M | 421.7M | 421.2M | 446.6M | 540M | 426M | 349.75M | 368.62M | 394.6M | 391.4M | 408.89M | 420M | 418.99M | 418.75M | 415.63M |
| Dividend Payout Ratio | - | 30.69% | 32.99% | 402.22% | 15.1% | 6.29% | - | 82.62% | 41.79% | 29.44% | 73.21% | 42.54% | 27.59% | 24.16% | 24.27% | 11.78% | 9.92% | 25.53% | - | 25.76% | 27.54% | 11.17% | 13.5% | 9.96% | - | - | - | - | - | - | - |
Structural demand contraction
According to the provided financial data, Macy's revenue growth has remained largely stagnant, with the most recent quarter showing a modest 2.1% increase following a prolonged period of year-over-year declines, suggesting that the company's core retail demand continues to face significant headwinds in the current environment.
The recent return to positive growth in 2026Q1 appears to be a fragile recovery rather than a sustained trend, especially when viewed against the backdrop of consistent quarterly declines throughout 2024 and 2025. Investors should monitor whether this uptick reflects genuine organic demand or merely the impact of aggressive promotional activity intended to clear inventory.
As reported in the company's income statements, gross margins fluctuate significantly between 26.7% and 42.3%, indicating that Macy's remains heavily reliant on seasonal discounting to drive traffic, which complicates the company's ability to maintain consistent profitability across its diverse luxury and mass-market brand portfolio.
The sharp compression in gross margin during the fourth quarter, dropping to 26.7%, highlights the structural necessity of deep markdowns to move seasonal inventory. This volatility suggests that the company lacks the pricing power required to insulate its margins from the cyclical nature of department store retail.
Based on the reported figures, Macy's operating margins have struggled to scale, frequently dipping below 2% in non-holiday quarters, which implies that the company's high fixed-cost base continues to absorb the majority of gross profit gains and limits the potential for meaningful bottom-line expansion.
The inability to consistently scale operating income despite revenue fluctuations suggests that the current cost structure is too rigid for the prevailing retail environment. Management's efforts to optimize the store fleet appear necessary to reduce this operating leverage risk, though the impact on profitability remains unproven.
As evidenced by the significant swings in net income, ranging from a $70 million loss in 2023Q4 to a $506 million profit in 2025Q4, the quality of reported earnings appears highly sensitive to seasonal timing and non-operating adjustments, warranting caution regarding the sustainability of current EPS.
The extreme variance in quarterly EPS, coupled with the unusual stock-based compensation figures, suggests that investors should look past headline numbers to understand the underlying cash-generating capability of the business. The reliance on credit card income, often treated as an SG&A offset, further complicates the assessment of core retail performance.
Based on an analysis of the income statement, the primary risk to the investment thesis is the potential for permanent margin erosion as digital fulfillment costs rise and the traditional department store model faces continued pressure from more agile, specialty-focused competitors in the consumer discretionary space.
Short-sellers would likely focus on the persistent revenue contraction and the high fixed-cost burden that leaves little room for error during economic downturns. If the 'Bold New Chapter' strategy fails to deliver immediate efficiency gains, the company may face further pressure to liquidate assets to satisfy debt obligations.
Quick answers to the most common questions about buying M stock.
For fiscal year 2025, Macy's, Inc. (M) reported total revenue of $22.62B. This represents a 48.5% increase compared to $15.23B in 1996.
Macy's, Inc. (M) is profitable, generating $642.0M in net income for the fiscal year ending 2025 with a net profit margin of 2.8%.
Macy's, Inc. (M) reported an operating income of $1.03B, resulting in an operating profit margin of 4.6%. This margin reflects the operational efficiency of the business before interest and taxes.
Macy's, Inc. (M) generated $8.27B in gross profit for the year, representing a gross profit margin of 36.5%. This demonstrates the company's core pricing power and production efficiency.