While Macy’s Inc (NYSE:M) reported upbeat fourth-quarter results, its outlook reflects flexibility due to uncertainty, according to Telsey Advisory Group.

The Macy’s Analyst: Analyst Dana Telsey reiterated a Market Perform rating, while reducing the price target from $25 to $20.

The Macy’s Thesis: The company reported a strong earnings beat, with sales, gross margin, and operating expense deleverage coming in better than consensus estimates, Telsey said in the note.

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The fourth-quarter momentum has continued so far in the first quarter, she added.

Management announced its 2026 sales guide higher than consensus expectations, reflecting "a relatively resilient customer while contemplating that macro and geopolitical factors could impact discretionary spend," the analyst wrote.

She further stated that Macy's continues to pursue its Bold New Chapter strategy, which includes:

  • Closing 150 underperforming stores
  • Expanding its luxury footprint by 20%
  • Targeting asset monetization of $650–$700 million

M Price Action: Macy’s shares were down 1.19% at $17.51 at the time of publication on Thursday, according to Benzinga Pro data.

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