• In recent days, analysts have projected that Macy's will report lower earnings per share and slightly softer revenue for its upcoming quarter, amid ongoing store closures and weak same-store sales that underscore operational strains.
• At the same time, Macy's trades on earnings multiples below many multiline retail peers, raising questions about whether its current challenges are fully reflected in its valuation.
• We’ll now examine how the anticipated earnings decline and ongoing store closures may influence Macy’s investment narrative and future prospects.

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Macy's Investment Narrative Recap

To own Macy’s today, you need to believe its omni channel investments and store optimization can offset ongoing store closures and softer same store sales. The latest expectation of a double digit EPS decline and slightly weaker revenue highlights that operational strain remains the key near term risk, while a below peer earnings multiple keeps valuation in focus. For now, the news reinforces existing concerns rather than reshaping Macy’s most important catalysts.

Against that backdrop, Macy’s ongoing share repurchases stand out. Between February and early May 2026, the company bought back about 2.6 million shares for roughly US$50 million, building on a multi year program that has retired more than 45 million shares. For investors, this buyback activity interacts directly with earnings expectations and the current earnings multiple, since fewer shares can amplify per share results if cash flows hold up.

Yet despite the recent share price strength and buybacks, the risk that ongoing store closures and weaker traffic could pressure revenue for longer is something investors should be aware of...

Macy's narrative projects $20.7 billion revenue and $664.5 million earnings by 2029.

Uncover how Macy's forecasts yield a $22.77 fair value, a 7% downside to its current price.

Exploring Other Perspectives

The most optimistic analysts were recently assuming roughly flat revenue near US$22.6 billion and earnings around US$660 million, which looks far rosier than today’s softer same store sales signal and shows just how differently you and other investors might frame Macy’s risks and opportunities.

Explore 6 other fair value estimates on Macy's - why the stock might be worth 50% less than the current price!

Reach Your Own Conclusion

Don't just follow the ticker - dig into the data and build a conviction that's truly your own.

• A great starting point for your Macy's research is our analysis highlighting 3 key rewards and 1 important warning sign that could impact your investment decision.
• Our free Macy's research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate Macy's overall financial health at a glance.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.