Macy's Bold New Chapter Execution Accelerates Enterprise-Wide Recovery

Macy’s Inc. M is demonstrating an accelerating enterprise-wide recovery as execution of its Bold New Chapter strategy gains traction. The company’s focused approach, strengthening the core Macy’s banner, scaling luxury and modernizing operations, is translating into improving customer engagement and stronger financial performance across the portfolio.

The impacts of this execution were clearly reflected in the third-quarter fiscal 2025 results. Macy’s delivered a positive 3.2% comparable sales increase, its strongest performance in 13 quarters, while adjusted earnings exceeded internal expectations. Results benefited from better-than-anticipated sales, margin performance and cost control, signaling that the underlying fundamentals of the business are strengthening despite a cautious consumer backdrop.

Momentum at the Macy’s nameplate reflected the benefits of focused investment and improved execution. Go-Forward stores delivered positive comparable sales growth, supported by enhanced merchandising, improved store presentation and stronger omnichannel integration. The Reimagine 125 locations continued to outperform the broader fleet, demonstrating how targeted upgrades in high-potential stores are driving higher traffic, engagement and conversion.

Luxury banners also played a critical role in the recovery. Bloomingdale’s posted its strongest comparable sales growth in over three years, benefiting from exclusive brand partnerships and strong demand in key categories. Bluemercury also delivered another quarter of comparable sales growth, supported by skincare and premium beauty, reinforcing the long-term opportunity in luxury.

Operational modernization further supported Macy’s recovery. Investments in supply-chain automation, inventory discipline, and cost control improved efficiency and margins while enabling continued reinvestment in growth initiatives. Collectively, these actions highlight how disciplined execution of the Bold New Chapter strategy is accelerating Macy’s enterprise-wide recovery and strengthening its long-term competitive position.

KSS & COST Focus on Store Optimization to Drive Growth

Store optimization remains a key growth lever for Kohl’s Corporation KSS as the company upgrades its physical retail experience to boost engagement and convenience in the third quarter of fiscal 2025. Kohl’s is refining store layouts, expanding impulse checkout areas and strengthening category adjacencies to promote product discovery and increase basket size.

Enhanced visual merchandising, clearer signage and stronger in-store inspiration are creating a more seamless and consistent customer journey. These initiatives reflect a disciplined execution approach that supports traffic recovery and positions Kohl’s for more durable long-term performance.

Costco Wholesale Corporation COST continues to improve store productivity and member experience through focused operational investments. In the first quarter of fiscal 2026, Costco opened eight warehouses, bringing its global footprint to 921 locations, while relocating high-volume stores to larger formats with improved parking and expanded gas station capacity.

Costco is also deploying membership pre-scanning and digital wallet functionality, delivering checkout speed gains of up to 20% in early-adopting warehouses. Targeted remodels and expanded ancillary services are further boosting sales efficiency, with fiscal 2025 new warehouses producing approximately $192 million in annualized sales per location.

Macy’s Price Performance, Valuation & Estimates

Shares of the company have soared 53.8% in the past six months compared with the industry’s 40.8% growth.

From a valuation standpoint, Macy’s is trading at a forward 12-month price-to-sales ratio of 0.25X, down from the industry average of 0.48X.

The Zacks Consensus Estimate for Macy’s fiscal 2025 earnings implies a year-over-year decline of 16.7%, whereas the same for fiscal 2026 indicates an uptick of 1.7%. Estimates for fiscal 2025 and 2026 have been revised upward by 16 cents and 11 cents, respectively, in the past 30 days.

Macy’s currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

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This article originally published on Zacks Investment Research (zacks.com).

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