Macy’s Reports Stagnant Sales and Profit Dive of 60% in Third Quarter

Macy’s closes the third quarter with a flat sales performance and a declining profit. The U.S. department store group posted a turnover of $4.913 billion, 0.2% more than in the same period last year. This translates into a difference of ten million dollars.

With the stagnation of sales, the U.S. group once again saw its profit plummet, this time by 60.7%. While in the third quarter of last year it posted a profit of $28 million, in the same period of this year the figure stands at $11 million.

The company has managed to increase its adjusted gross operating profit (ebitda) by 3.4%, from $273 million in the third quarter of 2024 to $285 million in the same period this year.

Macy’s earns $11 million in the third quarter, while in the same period of 2024 it recorded a profit of $28 million 

By chain, Macy’s sold 2.3% less compared to the same period last year. Bloomingdale’s, on the other hand, increased its sales by 8.6%, and Bluemercury by 3.8%.

Due to the tariffs, Macy’s expects an impact of forty to fifty basis points on its gross margin for the full year, considering that, in 2024, approximately 20% of its total products were manufactured in China.

However, the company has increased its sales forecast for the full year. If in September it put its revenue forecast at around $21.15 billion and $21.45 billion, in December it has increased the range to between $21.475 billion and $21.625 billion.

The group closed the 2024 financial year, which ended on February 1st, with a net profit of $582 million, almost thirteen times more than in the previous year, and a turnover of $23 billion, 3.4% less.