0001628280-26-021721
SEC filingMacy's, Inc. reported total revenue of $22.62 billion for fiscal year 2025, a slight decrease from $23.01 billion in 2024. Net income was $642 million, up from $582 million in the prior year, driven by a $328 million interchange fee settlement gain and improved operating income of $1.03 billion. The company's Bold New Chapter strategy showed progress, with comparable sales on an owned-plus-licensed-plus-marketplace basis increasing 1.5%. Key financial highlights include a gross margin of 38.0%, a decrease of 40 basis points, and net cash provided by operating activities of $1.43 billion. The company ended the year with $1.25 billion in cash and cash equivalents and total assets of $16.24 billion.
Macy's, Inc. reported fiscal year 2025 results with total revenue of $22.62 billion, a slight decrease from $23.01 billion in 2024. Net sales declined 2.4% to $21.76 billion, primarily due to store closures, while other revenue increased 20.2% to $857 million, driven by credit card revenues. Net income improved to $642 million from $582 million in the prior year, with diluted earnings per share increasing to $2.32 from $2.07. Operating income rose 13.3% to $1.03 billion, benefiting from a $328 million interchange fee settlement gain. The company's Bold New Chapter strategy showed progress, with comparable sales on an owned-plus-licensed-plus-marketplace basis increasing 1.5%.
Net sales decreased by $529 million (2.4%) to $21.76 billion, mainly due to the impact of store closures at the end of fiscal 2024. Comparable sales on an owned-plus-licensed-plus-marketplace basis increased 1.5%. Digital sales accounted for 35% of net sales, up from 33% in 2024. Other revenue increased to $857 million from $713 million, driven by a $132 million (25%) increase in credit card revenues, which reached $669 million (3.1% of net sales), and growth in Macy's Media Network revenue to $188 million from $176 million.
Gross margin decreased by 40 basis points to 38.0%, primarily due to the impact of tariffs, net of mitigation efforts. Selling, general and administrative expenses decreased by $90 million (1%) to $8.24 billion, benefiting from store closures and expense savings initiatives, partially offset by investments in the go-forward business. The company recognized $230 million in impairment, restructuring and other costs, primarily related to the Bold New Chapter strategy. Operating margin improved to 4.6% from 4.0% in the prior year.
Net cash provided by operating activities was $1.43 billion, up from $1.28 billion in 2024, primarily driven by working capital changes. Capital expenditures were $740 million, focused on digital and technology investments and omni-channel capabilities. The company paid $197 million in dividends and repurchased 17.7 million shares for $251 million. As of January 31, 2026, cash and cash equivalents were $1.25 billion, total assets were $16.24 billion, and total debt was $2.43 billion. The company had $1.96 billion available under its asset-based credit facility.
The company's Bold New Chapter strategy continues with three pillars: strengthening and reimagining the Macy's nameplate, accelerating luxury growth at Bloomingdale's and Bluemercury, and simplifying and modernizing operations. Management expects capital expenditures of approximately $800 million in 2026, focused on digital and technology investments, go-forward locations, and omni-channel capabilities. Key risks include execution of strategic plans, consumer discretionary spending, economic conditions, supply chain disruptions, cybersecurity threats, and regulatory changes. The company believes its available cash, expected future cash from operations, and credit facilities will be sufficient to meet working capital and capital expenditure needs for at least the next 12 months.