Macy’s posted stronger-than-expected sales for the third quarter, marking its most significant growth in over three years as the retailer’s turnaround strategy appears to be gaining traction. The department store chain raised its full-year outlook, now projecting adjusted earnings per share of $2 to $2.20, up from the prior range of $1.70 to $2.05, and net sales between $21.48 billion and $21.63 billion, compared with the previous forecast of $21.15 billion to $21.45 billion. Macy’s also anticipates flat to 0.5% comparable sales growth for the year, reversing an earlier prediction of a slight decline.
Despite the improved results, Macy’s expects some challenges during the holiday season due to selective consumer spending and higher tariffs. CEO Tony Spring described the outlook as “prudent,” citing tough year-over-year comparisons and uncertainty over how budget-conscious shoppers may behave. The retailer’s fiscal third-quarter results beat analyst expectations, with adjusted earnings per share at 9 cents versus a projected 14-cent loss and revenue of $4.71 billion compared with $4.62 billion anticipated. Macy’s continues to focus on revitalizing its namesake stores with enhanced staffing, sharper merchandise, and eye-catching displays, expanding the strategy to 125 locations. Bloomingdale’s and Bluemercury also contributed to growth, posting 9% and 1.1% comparable sales increases, respectively. While net income fell to $11 million for the quarter, Macy’s stock has surged roughly 34% year to date, outperforming the broader market.