Macy’s shares went up 17% today after the retailer posted its first same-store sales gain in three years and raised its profit outlook for the whole year. The second quarter results were better than predicted, which means that Macy’s attempt to turn things around by updating locations and making products more personal is starting to work. This caused one of the biggest one-day rallies in the company’s history.
What Happened & Why It Matters
Macy’s shocked everyone by saying that sales at stores that were similar to its own were up by 0.8% across the board. Analysts had thought that this would be a tiny drop, so this was better than they had thought. It was also the first good quarter since 2022.
Management boosted their profitability prediction for the remainder of 2025. Several major segments, such the “Reimagine” Macy’s stores, Bluemercury, and Bloomingdale’s, all showed growth.
The outcome demonstrated that US consumers are stronger than projected and that Macy’s hard attempts to turn things around are now starting to pay off. These are two of the key reasons why experts are upgrading their ratings and investors are delighted.
Market & Sector
The US retail industry is still mixed, and many competitors are having a hard time because people are being conservative with their money and tariffs are making things more expensive.
Wall Street took notice of Macy’s surprising increase and better forecasts because the company had been doing poorly before. This caused a lot of activity, which drove the stock up to its highest level since January.
People who invest in Macy’s are feeling better about the company’s plans to update its stores and improve its brand, as well as its ability to handle a harder retail market.
Breakdown
In the second quarter, net sales were $4.8 billion, which was a lot more than predicted. The adjusted diluted EPS was $0.41, which was also more than predicted.
The Reimagine 125 store effort brought in 1.4% greater sales. High-end brands Bluemercury (+1.2%) and Bloomingdale’s (+3.6%) did significantly better.
Macy’s now thinks that adjusted EPS for 2025 will be between $1.70 and $2.05, which is higher than the previous range of $1.60 to $2.00. The company also boosted its forecast for net revenues for the whole year.
Tony Spring, the CEO, claimed that the increase was because customers were still interested in new items, improved shopping experiences, and better cost management.