Macy’s reported strong fiscal third-quarter results, exceeding Wall Street expectations for the third consecutive quarter and showcasing the effectiveness of its turnaround strategy. The company raised its full-year sales and profit forecasts, anticipating adjusted earnings per share between $2 and $2.20, and net sales between $21.48 billion and $21.63 billion. This marked a revision from previous estimates.
Macy’s now expects sales to trend flat to a 0.5% year-over-year increase, benefiting from adjustments in its operations, including staffing and merchandising improvements at a significant number of its stores. However, challenges like rising tariffs and cautious consumer spending are expected to persist into the holiday season.
Despite a net income drop to $11 million from $28 million year-over-year, comparable sales saw a 3.2% increase companywide, driven by brands like Bloomingdale’s, which had a 9% increase in comparable sales. The company’s efforts included closing underperforming stores and expanding investments in its namesake brand.
CEO Tony Spring expressed a cautious outlook for the fourth quarter amid challenging comparisons and uncertainties regarding consumer spending. Nevertheless, Macy’s stock has performed well, rising about 34% year-to-date.
Overall, Macy’s is focused on improving its sales consistency and enhancing the customer experience in stores while navigating economic challenges.
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