March 18, 2026 — Macy’s, Inc. (NYSE: M) reported fourth-quarter financial results that exceeded analyst expectations, though the figures represent a decline from the prior year. The department store retailer posted adjusted earnings of $1.67 per share on revenue of $7.64 billion for the quarter ended January 2026.
Earnings and Revenue Surpass Expectations
The reported earnings per share of $1.67 surpassed the Zacks Consensus Estimate of $1.53, marking a positive earnings surprise of 9.39%. This performance follows a significant earnings surprise in the previous quarter. Revenue for the quarter also topped estimates, coming in 1.53% above the consensus forecast of $7.64 billion.
However, the results reflect ongoing challenges. The company’s earnings declined from $1.80 per share reported in the same quarter a year ago. Revenue also decreased from the $7.77 billion generated in the prior-year period.
Stock Performance and Market Context
Despite beating estimates, Macy’s shares have faced substantial pressure in the market. The stock has declined approximately 23.3% since the beginning of the calendar year. This contrasts sharply with the broader S&P 500 index, which has seen a decline of only 1.9% over the same period.
The sustainability of any immediate stock price movement following the earnings release will largely depend on management’s commentary during the subsequent conference call. Investors typically scrutinize such guidance for signals about future performance and strategic direction.
Analyst Outlook and Industry Challenges
Ahead of the earnings release, the trend in analyst earnings estimate revisions for Macy’s was unfavorable. Based on this trend, Zacks Investment Research assigned the stock a Zacks Rank #4 (Sell). This ranking suggests the shares are expected to underperform the market in the near term.
The broader industry context presents additional headwinds. Macy’s operates within the Zacks Retail – Regional Department Stores industry, which currently ranks in the bottom 14% of over 250 industries tracked by Zacks. Research from the firm indicates that industries in the top 50% of their rankings tend to outperform the bottom half by a significant margin.
Forward-Looking Estimates
Current consensus estimates project Macy’s will earn $0.16 per share on revenue of $4.57 billion in the coming quarter. For the current fiscal year, analysts expect earnings of $2.09 per share on revenue of $21.35 billion. These figures are subject to revision following the latest results and management’s updated guidance.
Investor attention now turns to how analysts adjust their models in response to the quarterly report. Empirical research often shows a correlation between near-term stock movements and trends in earnings estimate revisions.
Sector Peer Performance
Within the broader retail sector, other companies are also reporting quarterly results. Torrid Holdings Inc. (NYSE: CURV), a women’s apparel retailer, is scheduled to report results for the quarter ended January 2026. Analysts anticipate the company will post a quarterly loss.
For investors considering Macy’s, the company’s ability to navigate a difficult retail environment for traditional department stores remains a key question. Performance relative to future earnings expectations and the broader industry trend will likely dictate the stock’s trajectory. More information on the company’s financials is available in its official SEC filings.
Market participants can track the stock’s performance on the Nasdaq exchange. The Zacks Rank system, which incorporates earnings estimate revisions, has been utilized by investors since the late 1970s.
This article was produced with AI assistance and reviewed by our editorial team for accuracy and quality.
