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Consumer Cyclical · Department Stores · M

What Macy's Does & How It Makes Money (M)

Updated October 2026 · reflects Macy's's latest reported financials

Century-old U.S. department store chain selling apparel, beauty, and home goods. Macy's makes money mainly by selling merchandise to shoppers in its stores and through its websites and apps.

Macy's's story, moat and numbers — in a 3-minute visual book.

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How Macy's makes money

Macy's makes money mainly by selling merchandise to shoppers in its stores and through its websites and apps. It also earns revenue from license agreements for stores in Dubai and Kuwait.

What Macy's does

Macy's, Inc. is a U.S. omni-channel retailer that sells through physical stores, websites, and mobile apps. Its main categories are apparel and accessories for men, women, and kids, cosmetics, home furnishings, and other consumer goods. It sells under three banners: Macy's, the upscale Bloomingdale's, and the beauty chain Bluemercury. The company was founded in 1830 and is based in New York. It was known as Federated Department Stores, Inc. until it took the Macy's, Inc. name in June 2007. Nearly all of its business is in the United States, and license agreements extend its brands to Dubai in the United Arab Emirates and Al Zahra in Kuwait.

Products & services

What is Macy's worth?

On an owner-earnings DCF, Macy's's most-likely value is about $51 versus a recent price near $23 (126% below fair value). But TacticScale only calls a stock undervalued when the price sits below its conservative no-growth floor (~$41) with a margin of safety — so the honest verdict here is “Deeply discounted.” Fair value earns its keep only at the extremes, not in the wide middle.

Verdict: Deeply discounted
Owner-earnings fair value · recent price ≈ $23
Fair value (most likely)
$51
Range
$47–$61
No-growth floor
$41
Price
~$23

On the financials alone, $23 is below even the no-growth floor ($41); the market's discount — expectations and sentiment beyond the numbers — is pricing in ≈ -8.9%/yr. A bargain only if that pessimism is overdone.

Analysis, not advice. Fair value is a margin-of-safety estimate from a deterministic owner-earnings DCF, not a price target or recommendation. See the full breakdown →

Sector Consumer Cyclical Industry Department Stores HQ United States Ticker M Official site

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