Macy’s Raises Annual Sales Outlook as Holiday Shoppers Hold Firm

In early December 2025, Macy’s said it had again raised its full-year sales guidance after reporting stronger-than-expected results in the quarter ending Nov. 1, signaling resilience among holiday shoppers in U.S. stores and online. The department-store giant recorded comparable-sales growth of about 3 percent for the three months through Nov. 1, its best pace in more than three years, and cited broad strength from value assortments to luxury brands. Macy’s said comparable sales for the full year are now likely to be flat to up 0.5 percent, an upward revision from a previous forecast that allowed for a decline of up to 1.5 percent. Management pointed to new merchandise and a mix of discounted and premium offerings as drivers of the improvement as the holiday season began.

Key takeaways

• Macy’s reported roughly 3% comparable-sales growth for the three months through Nov. 1, the strongest quarterly rate in over three years.
• The company raised its full-year comparable-sales forecast to flat to +0.5%, an upgrade from a prior projection of down as much as 1.5%.
• Bloomingdale’s net sales climbed nearly 9% in the most recent quarter, boosting the group’s higher-end mix.
• Macy’s plans to close about 150 underperforming stores over coming years while expanding Bloomingdale’s and Bluemercury locations.
• The National Retail Federation reported a record 203 million shoppers in the five days from Thanksgiving to Cyber Monday, up from 197 million a year earlier.
• Retail trends show divergence: wealthier households continue to spend, while other income groups show weaker sentiment amid inflation and a cooling labor market.

Background

Macy’s is the largest department-store chain in the United States and has been pursuing a multi-year turnaround that combines store rationalization with investments in higher-margin banners such as Bloomingdale’s and Bluemercury. The retailer announced last year plans to close about 150 underperforming locations over the next several years while selectively opening new stores that it views as long-term growth assets. That strategy aims to reduce legacy costs and reallocate capital toward formats and merchandise mixes that perform better.

The retail environment in 2025 has been uneven: inflation pressures and a cooling labor market have reduced confidence among many shoppers, particularly in middle- and lower-income segments. At the same time, data from Moody’s Analytics and other forecasters show the top 10 percent of U.S. households account for a disproportionate share of consumer spending, supporting luxury and premium categories even as value-oriented retailers capture price-sensitive demand. This polarization has shaped outcomes across major U.S. chains in recent quarters.

Main event

On Dec. 3, 2025, Macy’s released quarterly results and updated guidance showing a stronger-than-expected performance in the most recent period. The company reported comparable-sales growth of roughly 3% for the three months through Nov. 1, an improvement management attributed to a wide-ranging product assortment that spans discount apparel to higher-end designer lines. Executives highlighted Bloomingdale’s nearly 9% sales gain as evidence that luxury and premium lines remain robust.

Chief Executive Tony Spring said the retailer entered the holiday season with “compelling new merchandise” that delivered both inspiration and value, a message Macy’s used to explain why traffic and conversion improved in key categories. The company also reiterated its plan to shutter underperforming stores while opening select Bloomingdale’s and Bluemercury locations, a strategic pivot intended to better align the store fleet with shifting consumer demand.

Macy’s upgraded its full-year comparable-sales outlook to flat to up 0.5%, marking a second consecutive quarter of forecast increases. The prior guidance had allowed for an annual sales decline of as much as 1.5%. Management framed the revision as confirmation that the turnaround plan is beginning to yield measurable results, though it also cautioned that the macroeconomic backdrop remains uneven.

Analysis & implications

The results underscore a bifurcated U.S. consumer landscape. Higher-income households continue to support premium and discretionary categories, helping banners like Bloomingdale’s outperform, while broad consumer caution favors retailers with extensive discount assortments. For Macy’s, the dual exposure to value and luxury offers a cushion: promotional goods drive traffic and clear inventory, while elevated sales at Bloomingdale’s lift overall margins.

Upgrading guidance for a second straight quarter suggests operational improvements are taking hold, including assortments, inventory management and marketing execution. That said, the absolute magnitude of the revision—moving from a potential -1.5% year to flat or +0.5%—still represents modest change relative to Macy’s overall revenue base, and the company remains exposed to swings in holiday spending patterns through December.

Broader industry data reinforce Macy’s message but also warn of fragility. The National Retail Federation’s survey showing 203 million shoppers in the five-day Thanksgiving-Cyber Monday window indicates strong footfall and online demand, but aggregate figures can mask shifting basket sizes and margin pressures. If consumers increasingly trade down or concentrate spend among the wealthiest households, retailers that do not offer both value and aspirational products may underperform.

Comparison & data

The table consolidates the key numerical takeaways: Macy’s comparable-sales gain, the revised full-year outlook, Bloomingdale’s outperformance, and the NRF shopping-volume data. These figures illustrate both the company-specific turnaround signals and the larger consumer trends—strong traffic during the key shopping window but uneven strength across income cohorts.

Reactions & quotes

“We entered the season well positioned with compelling new merchandise that provides both inspiration and value,” Macy’s CEO said as the company explained the sales momentum.

Tony Spring, Macy’s (company statement)

“A record 203 million consumers shopped from Thanksgiving through Cyber Monday,” the industry group reported, highlighting broad participation during the holiday window.

National Retail Federation (industry survey)

Moody’s data showing that the top 10% of households account for nearly half of all spending helps explain why luxury banners can outperform even when broader consumer sentiment softens.

Moody’s Analytics (economic research)

Unconfirmed

• Whether the bulk of the recent sales gain is structural or concentrated in a few categories remains to be confirmed by full-month December data and category-level disclosure.
• The precise contribution of tariffs, supply-chain shifts or promotional cadence to the quarter’s results has not been disclosed in detail by the company.

Bottom line

Macy’s latest update presents a cautiously optimistic picture: comparable sales improved materially in the quarter through Nov. 1, and management has lifted full-year guidance for a second straight quarter. The results suggest that offering both value merchandise and premium brands can mitigate downside in a polarized consumer environment.

Still, the improvement is modest in the context of Macy’s overall revenue base, and the firm remains exposed to how December holiday spending actually plays out and whether discretionary categories sustain momentum. Investors and industry watchers should look for category-level sales breakdowns, December performance, and margin trends to determine whether the upgrade reflects a durable turnaround.

Sources

• The New York Times — news report summarizing Macy’s results and industry context (media).
• Macy’s investor relations — company earnings release and guidance (official company filing/press release).
• National Retail Federation (NRF) — consumer survey on Thanksgiving–Cyber Monday shopping (industry group data).
• Moody’s Analytics — analysis on income distribution and consumer spending (economic research/analysis).