Macy's (M) Stock Forecast & Price Target

Macy's demonstrated a positive financial trajectory with a 2.0% year-over-year improvement in sales at Bloomingdale's, along with strong comparable sales growth of 6.2% on an owned basis, marking the sixteenth consecutive quarter of growth for the brand. Additionally, Macy's Media Network revenue increased by 6.7%, driven by a rise in advertiser campaigns, while the company expects an improved inventory composition heading into 2025, indicating strategic inventory management. The anticipated increase in other revenues, particularly from a strong credit portfolio and enhanced credit card usage initiatives, further supports a favorable outlook for Macy's financial performance.

Macy's is projected to experience a net sales decline of 4.1% year-over-year, with total sales expected to reach approximately $7.789 billion, indicative of ongoing challenges in the retail environment. The company is also facing a contraction in gross margin by 80 basis points to 35.7% and a forecasted operating margin contraction of 280 basis points to 7.4%, both of which are below market expectations. Additionally, the decline in credit card revenues by 10.3% year-over-year further underscores the weakening consumer demand and financial pressures faced by the retailer.