Macy’s Inc (NYSE:M) reported upbeat fourth-quarter results, with strong comp trends continuing, according to Goldman Sachs analyst Brooke Roach.

The Macy’s Analyst: Roach maintains a Neutral rating and price target of $22.

The Macy’s Thesis: Macy’s reported retail sales of $7.639 billion and adjusted earnings of $1.67 per share, above consensus estimates of $7.500 billion and $1.57 per share, respectively.

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Macy’s comps came in at 1.8%, beating expectations of a decline on 0.9%, she added.

Management guided to 2026 earnings of $1.90-$2.10 per share, which missed consensus of $2.22 per share due to the company excluding asset sale gains and benefit plan income from the estimate, the analyst stated.

"Comps (owned + licensed + marketplace) are guided at -0.5% to +0.5% (ahead of consensus at 0.2%), and net sales are guided ahead of consensus at $21.400bn to $21.650bn (vs. GS/consensus at $21.285bn/$20.923bn)," she further wrote.

While comps at Macy's peers remain under pressure, the company reported another quarter of positive comp momentum and expects this to continue into the first quarter, Roach said.

M Price Action: Shares of Macy’s had risen by 4.96% to $17.72 at the time of publication on Wednesday.

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