Macy’s Stock Hits $19.51 in 2025 as Q1 Earnings Beat Expectations Despite Store Closures
Macy’s showcases a promising turnaround in 2025 with Q1 profits surpassing forecasts, driven by strategic closures of 150 stores and enhanced focus on Bloomingdale’s and Bluemercury brands, signaling renewed growth and investor confidence.
Highlights of Macy’s Q1 2024 Performance
- Macy’s stock climbed on Tuesday after reporting first-quarter earnings that declined compared to last year but outperformed analysts’ predictions.
- The company concluded a proxy battle by adding two new board members and unveiled a restructuring plan to close 150 stores aimed at boosting profitability.
- Updated full-year guidance indicates raised lower bounds for revenue and comparable sales, reflecting growing optimism.
Shares of Macy’s (M) increased during Tuesday’s trading session following the release of its first-quarter 2024 earnings report, revealing that the retailer’s turnaround strategy—featuring store closures and workforce reductions—is beginning to yield positive results.
During the quarter, Macy’s resolved a proxy contest by appointing board members from activist investor Arkhouse Management and simultaneously announced a bold plan to shutter 150 underperforming stores as part of its cost-cutting efforts.
Operating its flagship Macy’s brand alongside Bloomingdale’s and Bluemercury, the company reported profits and revenues that surpassed analyst expectations.
Total revenue reached $5 billion, slightly above the $4.97 billion projected by analysts per Visible Alpha estimates but below the $5.17 billion generated in Q1 2023.
Net income stood at $62 million, or 22 cents per share—less than half of last year’s $155 million (56 cents per share) but exceeding analyst estimates of $47.59 million and 16 cents per share.
Macy’s revised its full-year 2024 forecast by narrowing projected net sales to a range between $22.3 billion and $22.9 billion, lifting the lower end from its previous $22.2 billion. Comparable sales are now expected to vary from a 1% decline to a 1.5% increase, a more optimistic outlook than prior estimates.
Strategic Turnaround and Proxy Battle Resolution
As retail trends continue shifting online, Macy’s has closed hundreds of stores in recent years and, earlier in 2024, announced a comprehensive turnaround plan to shutter 150 less productive locations.
While reducing Macy’s footprint, the company plans to grow its upscale Bloomingdale’s and Bluemercury brands and expand smaller, more cost-effective Macy’s stores.
CEO Tony Spring stated, "Though still early, our investments in product, presentation, and customer experience are gaining traction and affirm our confidence that Macy’s, Inc. can achieve sustainable, profitable growth in the long term.”
The retailer also ended its proxy fight by appointing two board members from activist investor Arkhouse Management, which has partnered with Brigade Capital Management to propose taking Macy’s private. Despite rejecting several offers—including a $21-per-share bid in December—Macy’s remains open to ongoing discussions.
By 9:52 a.m. ET Tuesday, Macy’s shares had risen 2.2% to $19.51, though the stock has declined over 2% year-to-date in 2024.
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