How Good Has Macy's (M) Stock Actually Been?
Key Points
Macy's is still a huge company, but it's losing relevance in a shifting retail landscape.
Sales continue to decline, and the profit margin is shrinking.
Macy's stock is cheap, but its prospects don't look attractive.
- 10 stocks we like better than Macy's ›
Macy's (NYSE: M) is an iconic department store chain that has been around since 1858. It has stood the test of time, but it's been struggling over the past few years.
Let's check out where it stands today and how its stock has performed for shareholders.
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Image source: Macy's.
What's happening at Macy's
Macy's sales continue to decline as the American retail landscape shifts. The huge department store of the past has morphed into boutique experiences, designer stores, and, most significantly, online shopping.
Macy's has kept up with omnichannel options, but it's saddled with huge, expensive real estate that isn't bringing in the same volume. E-commerce is a level playing field where many smaller brands can reach customers the same way a giant like Macy's can.
Despite continued efforts to make the company over, recent results have been disappointing. Sales were down 2.5% from last year in the 2025 fiscal second quarter (ended Aug. 2), but comparable sales (comps) were up 0.8%, the company's best result in 12 quarters. The Bloomingdale's brand performed particularly well, with comps up 3.6% from last year.
Gross margin was down 0.8 percentage points to 39.7%, and adjusted net income was $113 million, at just a 2.3% margin.
How has Macy's stock performed over time?
Macy's stock has been up and down over the past few years, but it's beating the S&P 500 (SNPINDEX: ^GSPC) this year and over certain time periods.
| Total return | S&P 500 | Macy's |
|---|---|---|
| One year | 12% | 30% |
| Three years | 71% | (2%) |
| Five years | 99% | 128% |
Data source: YCharts data as of Nov. 21, 2025.
Total returns include Macy's dividend, which yields 3.6% at the current price. If you go back further, it looks much different, with Macy's stock losing 21% over the past 10 years while the index is up 277%. This implies that the gains you see in the table are more of a rebound, and the rebound hasn't been linear.
At the current price, Macy's stock trades at only 11 times trailing 12-month earnings. However, that doesn't seem like much of a bargain considering its current prospects.
Macy's is still a formidable company, with $22 billion in trailing 12-month sales. However, that's well off its record highs from several years ago, and the company is having a lot of trouble maintaining relevance in today's retail climate. There's a chance that Macy's will recover under better circumstances and begin to climb again, but investors may want to look elsewhere for growth opportunities.
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Jennifer Saibil has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.
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