Why TD Cowen Turned More Cautious on Macy’s (M) Despite a Fourth-Quarter Beat

Macy’s Inc. (NYSE:M) is one of the stocks most affected by inflation.

On March 19, 2026, TD Cowen analyst Oliver Chen maintained a Hold rating on Macy’s and cut the price target to $20 from $21. Public summaries of the note said the firm pointed to a fourth-quarter earnings beat, with adjusted EPS of $1.67 versus expectations near $1.57, and comparable sales growth of 1.8% against expectations for a 0.9% decline, helped by strength in fragrance and luxury categories. Even so, the target cut reflected margin concerns, which fits the broader pressure facing department stores as inflation, tariffs, and freight-related costs keep the consumer and the cost base under strain.

Jonathan Weiss / Shutterstock.com

For context, Macy’s reported fourth-quarter 2025 net sales of $7.64 billion, down 1.7% year over year, while adjusted EPS came in at $1.67 and comparable sales rose 1.8%. For fiscal 2026, the company guided for net sales of $21.4 billion to $21.65 billion and adjusted EPS of $1.90 to $2.10. Management said it was taking a prudent view because of macroeconomic and geopolitical uncertainty affecting consumer spending, and CFO Tom Edwards said tariffs are expected to reduce EPS by about $0.05 to $0.10 and gross margin by roughly 40 to 60 basis points, especially in the first half.

Macy’s, Inc. (NYSE:M) is a U.S. department store retailer that operates the Macy’s, Bloomingdale’s, and Bluemercury banners.

READ NEXT: 33 Stocks That Should Double in 3 Years and 15 Stocks That Will Make You Rich in 10 Years.

Disclosure: None. Follow Insider Monkey on Google News.