Home / Macy’s News: Earnings, Store Closures, & Strategic Shifts

Macy’s News: Earnings, Store Closures, & Strategic Shifts

By: Jasmin Espinas
May 28, 2025

Macy’s, once a dominant name in American department store retail, continues to face intensified pressure from shifting consumer behavior and rising operational costs. In recent Macy’s news, the company released its Q1 2025 earnings report, signaling deeper internal adjustments.

This roundup will also include discussions of Macy’s 2026 store closure plans, pricing strategy in response to U.S. import tariffs, and executive leadership restructuring.

Latest Macy’s News: Q1 2025 Earnings Beat Forecast Despite Slower Sales

Macy’s, Inc. (NYSE: M) released its Q1 2025 results on May 28, reporting $4.6 billion in net sales, slightly ahead of internal projections.

Although sales fell year-over-year, performance outpaced expectations due to stronger results across Macy’s, Bloomingdale’s, and Bluemercury. Adjusted earnings per share also reached $0.16, while GAAP earnings came in at $0.13.

As part of this recent Macy’s news, the report pointed to solid results from Bloomingdale’s. This saw a 3.8% increase in comparable sales, including marketplace and licensed channels.

Bluemercury also extended its upward trend with a 1.5% gain, while Macy’s core locations declined 2.9% on an owned basis.

Conversely, stores under the “Reimagine 125” initiative posted more modest losses, suggesting that targeted efforts are helping cushion broader declines.

Meanwhile, credit card revenue jumped 31.6% to $154 million. Then, Macy’s Media Network contributed $40 million, up 8.1% from the prior year.

In addition, the company returned $152 million to shareholders, balancing dividend payouts with share repurchases.

CEO Tony Spring credited the quarter’s relative strength to what he called the “Bold New Chapter” strategy, citing improvements in customer-facing initiatives.

Macy’s now anticipates maintaining this strategy to protect profitability while scaling back lower-performing assets.

Macy’s News: Macy’s to Close 150 Stores by 2026

In another Macy’s news, the company confirmed the closure of 66 underperforming locations on January 9, the first wave in a broader plan to phase out 150 stores by the end of fiscal 2026.

These closures fall under the company’s Bold New Chapter strategy, introduced in February 2024. This strategy focuses on shifting capital toward stronger-performing sites and digital growth.

Macy’s Is Closing 150 Stores Over The Next 3 Yearshttps://t.co/qrrM7hGjEa pic.twitter.com/RoF8HrQHyM

— Forbes (@Forbes) February 27, 2024

The goal is to concentrate investment in 350 go-forward stores expected to deliver higher returns.

Separately, leadership pointed to early results from its pilot group, referred to as the First 50, which have shown sales growth for three consecutive quarters.

These stores also recorded improved customer satisfaction metrics, reinforcing the decision to prioritize select locations rather than maintain an overstretched footprint.

The closures, while difficult, allow the company to reallocate resources toward upgrades that directly impact store experience and service levels.

According to CEO Tony Spring, this approach has already produced measurable gains in customer response and operating efficiency.

As a result, Macy’s enters 2025 with a slimmer but more focused store portfolio, aiming to scale the improvements already underway while adapting to long-term shifts in shopping behavior.

Macy’s to Raise Prices on Select Products to Offset Tariff Impact

Macy’s plans to raise prices on certain items in response to newly imposed tariffs on Chinese imports, a shift CEO Tony Spring detailed during the May 28 earnings call.

The company has already started cancelling or postponing some product orders from China, focusing instead on managing inventory and pricing more selectively.

In this round of Macy’s news, Spring described the company’s approach as “surgical,” stating that products not meeting internal pricing and quality standards will be removed entirely.

The adjustments won’t affect all categories. Some products will remain at current price points, while others, especially those impacted most by sourcing costs, may see increases.

Spring also noted that Macy’s has more flexibility than many retailers due to its diverse merchandise mix. This allows the company to shift focus when needed without relying too heavily on any single product group.

At the same time, he emphasized that Macy’s will continue working closely with suppliers and manufacturers to ensure pricing remains competitive amidst complex sourcing processes.

Macy’s Restructures Executive Team with New CFO and COO Appointments

Macy’s announced a leadership realignment on April 1, reinforcing its focus on operational discipline and financial restructuring under the Bold New Chapter strategy.

Effective June 22, Thomas J. Edwards will take over as both Chief Financial Officer and Chief Operating Officer. He replaces Adrian Mitchell, who will remain in both roles through June 21 to ensure a smooth transition.

Barbie Cameron, currently Chief Stores Officer, will begin reporting directly to CEO Tony Spring.

In a related move, Maly Bernstein, who leads Bluemercury, will report to Olivier Bron, CEO of Bloomingdale’s, starting May 1.

These adjustments aim to streamline reporting lines and improve decision-making across the company’s three banners.

Spring stated that the changes reflect a broader effort to realign the executive team with current performance goals. He also added that the company now has the structure to focus more effectively on restoring long-term growth.

Final Thoughts

Macy’s is entering the second half of 2025 with a restructured leadership team and a tighter focus on pricing.

The company’s efforts to redirect capital to higher-performing locations, reduce exposure to tariff-sensitive products, and centralize decision-making suggest a strategy built for cost control and selectivity.

However, the next quarters will test whether these shifts can sustain earnings and regain traction with consumers.

While the company has outperformed its own recent forecasts, consistent gains across sales channels will be crucial to support its long-term plan.

Stay informed on how Macy’s strategy unfolds and what it signals for the rest of the retail sector.

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