Macy’s Inc (NYSE:M) stock fell 1.52% (As on March 19, 11:45:09 AM UTC-4, Source: Google Finance) after the company reported fourth-quarter fiscal 2025 results, wherein the top and bottom lines surpassed the market’s expectations. However, both metrics decreased from the year-ago quarter. Comparable sales (comps) increased on an owned-plus-licensed-plus-marketplace basis. Comps increased 1.8%, with growth recorded across all nameplates. M’s go-forward business comps, including both go-forward locations and digital platforms across all nameplates, increased 2% on an owned-plus-licensed-plus-marketplace basis. Net credit card revenues were $205 million, up 17.1% year over year, driven by the company’s healthy credit portfolio. Macy’s Media Network revenues were $72 million, up 12.5% year over year. The company ended fiscal 2025 with cash and cash equivalents of $1.25 billion, and total debt of $2.4 billion. In fiscal 2025, net cash provided by operating activities was $1.43 billion, while the free cash flow amounted to $0.8 billion.

Moreover, Comps across the Macy’s brand increased 0.4% year over year on an owned-plus-licensed-plus-marketplace basis, while go-forward comps rose 0.6%. Reimagine 125 locations comps increased 0.9%. At the Bloomingdale’s brand, comps increased 9.9% on an owned-plus-licensed-plus-marketplace basis. Comps at the Bluemercury brand rose 1.3% on an owned-plus-licensed-plus-marketplace basis, reflecting continued steady growth.

M in the fourth quarter of FY 25 has reported the adjusted earnings per share of $1.67, beating the analysts’ estimates for the adjusted earnings per share of $1.53. The company had reported the adjusted revenue decline of 1.7 percent to $7.64 billion in the fourth quarter of FY 25, beating the analysts’ estimates for revenue of $7.52 billion. The gross margin in the fiscal fourth quarter was 35.2%. This represented a decline of 50 basis points from last year, driven by an approximately 60-basis-point impact of tariffs. Macy’s reported adjusted EBITDA of $840 million, down 7% from $903 million in the year-ago quarter. The adjusted EBITDA margin was 10.6%, down 70 basis points year over year.

Additionally, in the fiscal fourth quarter, the company repurchased 2.3 million shares for $50 million, bringing the total share repurchases for the full fiscal year to 17.7 million shares for $251 million. As of the end of fiscal 2025, $1.1 billion remained available under its $2-billion share repurchase authorization.

FY26 Macy’s expects net sales of $21.4-$21.65 billion, whereas it reported $21.8 billion in fiscal 2025. Comparable sales (owned-plus-licensed-plus-marketplace) are projected between a decline of 0.5% and growth of 0.5%, whereas it registered a 1.5% increase in fiscal 2025.