Shares of Macy’s (M) jumped over 12% in pre-market trading on Wednesday after the retailer posted stronger-than-expected fiscal Q2 results, boosted by its turnaround strategy. The company also slightly raised its full-year sales outlook to $21.15 billion–$21.45 billion, compared with its prior forecast of $21 billion–$21.4 billion. This effectively reverses last quarter’s guidance cut, when Macy’s lowered its full-year outlook and cited sales uncertainty tied to President Donald Trump’s tariffs.
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Macy’s is a major American department store chain that sells apparel, beauty products, home goods, and accessories.
Macy’s Q2 Shines as Same-Store Sales Beat Expectations
Macy’s posted its first same-store sales increase in three years, ending 12 straight quarters of declines. Notably, same-store sales rose 0.8% in the second quarter, which ended on August 12, 2025. The same-store sales growth was even better at 1.1% at the 350 stores Macy’s plans to keep operational.
CEO Tony Spring highlighted the company’s strongest comparable sales growth in a year. He further noted that the company is focusing on areas driving momentum, such as denim, women’s contemporary apparel, and watches.
That said, overall revenue fell 2.5% year over year to $4.81 billion, though it still topped estimates of $4.76 billion. The decline was largely driven by more than 60 store closures, which had contributed about $170 million in sales during the same quarter last year.
Macy’s Outlook
Looking ahead, Macy’s also raised its earnings outlook. The retailer now expects adjusted earnings of $1.70 to $2.05 per share, up from its prior forecast of $1.60 to $2. Management noted that the outlook still assumes consumers will remain more selective with their spending in the second half of the year. Overall, the company remains cautiously optimistic about the future.
Additionally, Macy’s said its outlook already factors in the impact of tariffs. Back in May, executives outlined plans to offset the pressure through selective price increases and reducing dependence on goods from China.
What is Macy’s Stock Price Target?
According to TipRanks, Wall Street has a Hold consensus rating on M stock, based on one Buy, three holds, and one Sell assigned in the last three months. The average Macy’s stock price target of $11.75 implies a downside of 13% from the current level.
These ratings and price targets will likely change as analysts update their coverage following today’s earnings report.
