Macy’s Inc. (NYSE:M) moved 3.5% higher in premarket trading on Wednesday after the retailer delivered third-quarter results that topped expectations and raised its full-year guidance, supported by its strongest comparable sales performance in more than three years.
The company reported adjusted EPS of $0.09, easily outpacing analysts’ expectations of a $0.13 loss. Revenue reached $4.7 billion, beating the $4.56 billion consensus. Comparable sales rose 3.2% on an owned-plus-licensed-plus-marketplace basis, coming in above Macy’s internal forecast.
“Our third quarter sales were the strongest in 13 quarters, reflecting the acceleration of our Bold New Chapter strategy and demonstrating that the meaningful enterprise-wide changes we’ve made are resonating with customers,” said Tony Spring, chairman and CEO of Macy’s.
Bloomingdale’s remained a standout, booking its fifth straight quarter of comp sales gains, up 9% — its best performance in 13 quarters. Macy’s Reimagine 125 stores also continued to outperform the broader fleet, with comps rising 2.7%, while Bluemercury posted a 1.1% increase.
The company lifted its full-year EPS outlook to $2.00–$2.20, above its prior view of $1.70–$2.05 and matching the Street’s $2.00 expectation. Macy’s also boosted its annual revenue forecast to $21.48–$21.63 billion, ahead of the $21.3 billion consensus.
Gross margin slipped by 20 basis points to 39.4%, mainly due to tariff pressure, though Macy’s noted this result was better than anticipated thanks to mitigation initiatives. During the quarter, the retailer returned about $99 million to shareholders through dividends and buybacks.
As the holiday season approaches, Spring added: “We are well-positioned with compelling new merchandise and an omni-channel customer experience that delivers both inspiration and value.”