Is M (Macy's, Inc.) Halal or Haram?

Based on our AAOIFI-standard shariah screening, M is classified as Doubtful. It passed 3 of 4 compliance screens. Some scholars may permit investing with income purification, while others advise avoiding it. We recommend consulting a qualified Islamic scholar before investing in M.

Macy's, Inc. is a titan of American retail, operating over 700 department stores under iconic banners like Macy's, Bloomingdale's, and Bluemercury. The company functions as an omni-channel retailer, selling a vast array of merchandise ranging from designer apparel and luxury cosmetics to home furnishings and accessories. Beyond its U.S. footprint, it maintains a global presence through licensing agreements in locations like Dubai and Kuwait , solidifying its status as a major player in the consumer cyclical sector. For Muslim investors, Macy's presents a significant compliance challenge under AAOIFI standards, currently classified as 'Doubtful.' While the core business of selling clothes and home goods is permissible, the company fails the critical financial screening regarding debt. Specifically, its Debt-to-Market Cap ratio stands at 106.1%, which is more than triple the allowable threshold of 33%, indicating a capital structure that relies too heavily on interest-bearing loans. Despite passing the screens for Interest Income (0. 00%) and Cash & Securities (24.3%), the high leverage is a major red flag for halal investing . This excessive debt load means a significant portion of the company's value is derived from impermissible financing, which many scholars view as contaminating the investment. Investors looking for exposure to the retail sector may need to look for competitors with cleaner balance sheets and lower debt burdens. Investors holding this stock should be aware that unless Macy's significantly reduces its debt or its market capitalization drastically increases to balance the ratio, it remains non-compliant. Those strictly following AAOIFI guidelines would typically avoid this stock until the leverage metrics align with the 33% limit, regardless of the permissibility of its retail operations. Macy's, Inc. operates in the Consumer Cyclical sector under the Department Stores industry and is headquartered in New York City, NY, US. The company is led by CEO Antony Spring and employs approximately 94,189 people.

M was screened using AAOIFI-based shariah compliance criteria. Four tests are applied: (1) Business Activity — the company's core business must not derive primary income from haram (prohibited) activities such as alcohol, gambling, tobacco, or interest-based finance. (2) Debt-to-Market-Cap — total debt must not exceed 33% of market capitalization. (3) Interest Income — interest income must not exceed 5% of total revenue. (4) Cash & Securities — cash and interest-bearing securities must not exceed 33% of market cap. M passed 3 of these 4 screens.

M was last screened on 2026-02-25. Shariah compliance status can change as companies report new financial data, acquire new businesses, or shift revenue streams. We recommend checking back periodically for the most up-to-date screening results.