• The New York-based company also raised its net sales forecast to $21.48 billion to $21.63 billion, up from $21.15 billion to $21.45 billion projected earlier.
• The company reported an adjusted earnings per share of $0.09, while analysts expected a loss of $0.14 per share, according to Fiscal.ai data.
• Macy’s still warned that customers remain ‘choiceful’ during the holiday season, and higher tariffs would continue to impact its earnings.

Macy’s (M) stock is expected to draw retail attention on Wednesday after the departmental store operator raised its sales and earnings forecast for the second quarter running amid its ongoing turnaround efforts.

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The company projected adjusted earnings per share between $2 and $2.20, compared with its prior forecast of $1.70 to $2.05. The New York-based company also raised its net sales forecast to the range of $21.48 billion to $21.63 billion, from $21.15 billion and $21.45 billion, projected earlier.

Customers Remain ‘Choiceful’ Amid Higher Tariffs

Macy’s still warned that customers remain ‘choiceful’ during the holiday season, and higher tariffs would continue to impact its earnings. In a CNBC interview, Macy’s CEO Tony Spring said the company is taking a “prudent view” of the current quarter as it faces tough year-over-year comparisons and because it’s not sure how “aspirational customers,” those who prefer in-store purchases but are financially pressured, may spend during the season.

“We’re pleased with the fourth quarter to date, but we have a big holiday in front of us,” he reportedly said. The stock was down 6.5% in premarket trading.

Comparable Store Sales Grow In Q3

Amid a surge in the popularity of online retailers, legacy firms like Macy’s are aggressively closing low-performing stores and focusing on profitable locations and product launches. Macy’s high-end departmental store, Bloomingdale’s, and the beauty chain, Bluemercury, have shown promising growth.

The company said its comparable sales, which remove new locations or closed stores, rose 2.5% compared to a year earlier. Bloomingdale’s comparable sales were up 8.8%, Bluemercury's net sales rose 1.1%. Macy’s said its margins took a 20-basis-point hit, primarily due to higher tariffs.

The company reported adjusted earnings of $0.09 per share, while analysts expected a loss of $0.14 per share, according to Fiscal.ai data. Its net sales of $4.7 billion also topped expectations of $4.56 billion.

What Are Stocktwits Users Thinking?

Retail sentiment on Stocktwits about Macy’s was in the ‘extremely bullish’ territory at the time of writing.

Macy’s stock has gained nearly 33% this year, while rival Kohl’s stock has gained over 74%.

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