Macy’s surges after crushing Q2 expectations and lifting full-year outlook

Macy’s shares soared after the legacy department store chain posted knockout Q2 results and raised its full-year guidance.

Adjusted earnings per share came in at $0.41, more than double the $0.19 analysts polled by FactSet expected. Revenue hit $4.8 billion, topping Wall Street’s $4.7 billion estimate. Same-store sales rose 0.8%, Macy’s best comp growth in 12 quarters and well ahead of analysts’ forecasts for a 0.5% decline.

Macy’s also lifted its full-year guidance. The retailer now expects adjusted earnings of $1.70 to $2.05, compared with its prior $1.60 to $2.00 outlook and the Street’s $1.79 forecast. Annual revenue is now pegged between $21.15 billion and $21.45 billion, up from the company’s previous range of $21.0 billion to $21.4 billion.

The stock was up 15% in early trading.

CEO Tony Spring said he saw “strong performance” at Bloomingdale’s, Bluemercury, and stores that were part of its ‘Reimagine 125’ rollout, which gave a makeover to 125 core stores with upgraded dressing rooms, refreshed layouts, more staff, and sharper assortments.

Still, the company flagged some pressure as margins got squeezed by spring inventory markdowns and product bought under prior tariff rates. Management also warned that persistent tariffs, inflation, and cautious consumer spending could still be impactful through year-end.

Prior to the earnings release, Macy’s shares were down about 18.5% year to date.