Macy's (NYSE:M) is a well-known department store chain in the United States, offering a wide range of products from clothing to home goods. The company operates under various banners, including Bloomingdale's and Bluemercury, and has been working on a turnaround plan to improve its financial performance. Macy's faces competition from other retail giants like Nordstrom and Kohl's.
On September 3, 2025, Macy's reported earnings per share of $0.41, surpassing the estimated $0.19. The company also reported revenue of approximately $4.81 billion, exceeding the estimated $4.70 billion. This strong performance led to a 10% surge in Macy's shares, as highlighted by CNBC's Courtney Reagan on 'Squawk Box'. The positive earnings results and raised financial outlook have contributed to the boost in Macy's stock value.
Macy's has increased its annual sales and profit forecasts, driven by strong demand across its various banners. The company now anticipates adjusted earnings between $1.70 and $2.05 per share, up from the previous forecast of $1.60 to $2 per share. Revenue projections have also been increased to a range of $21.15 billion to $21.45 billion, compared to the earlier estimate of $21 billion to $21.4 billion.
CEO Tony Spring attributes the improved sales trends to the company's revamped stores, which have enhanced the shopping experience for customers. Despite previous challenges, including uncertainty in sales due to tariffs imposed by President Donald Trump, Macy's is now well-positioned to capture market share. The company's net income for the three-month period ending August 2 was $87 million.
Macy's financial metrics provide insight into its market valuation and performance. The company has a price-to-earnings (P/E) ratio of approximately 6.71, indicating the market's valuation of its earnings. Its price-to-sales ratio stands at about 0.16, suggesting a relatively low market valuation compared to its revenue. Macy's enterprise value to sales ratio is around 0.37, reflecting the company's total valuation in relation to its sales. The enterprise value to operating cash flow ratio is approximately 7.74, providing insight into the company's cash flow generation relative to its valuation. Macy's earnings yield is about 14.90%, offering a perspective on the return on investment from its earnings. The debt-to-equity ratio is approximately 1.27, indicating the company's financial leverage. Lastly, Macy's current ratio is around 1.43, suggesting a solid ability to cover its short-term liabilities with its short-term assets.
