Macy's stock spiked on Wednesday, executing a critical chart move after the legacy retailer topped estimates for Q2 results.
Macy's reported a 22% decline in earnings to 41 cents per share adjusted to trounce expectations for 19 cents per share. Net sales declined 2.5% to $4.81 billion, but still came out ahead of FactSet forecasts for $4.7 billion.
Comparable sales climbed 0.8% on an owned basis, and rose 1.9% including licensed and marketplace locations. Macy's noted it was the best comparable sales growth in 12 quarters.
Net sales for Bloomingdales grew 4.6%, driven by 3.6% comparable sales growth. Sales from Bluemercury, Macy's luxury spa and beauty unit, increased 3.3%, on 1.2% comparable sales growth.
Macy's management raised full-year guidance to include tariff impacts on gross margins in Q3 and Q4. The retailer expects customers will be more mindful of shopping choices and more open to promotional discounts.
Macy's now expects earnings to range from $1.70 to $2.05 per share adjusted, compared to its prior forecast for $1.60 to $2 per share. Net sales are seen ranging from $21.15 billion to $21.45 billion. The previous forecast called for $21 billion to $21.4 billion in sales for the year. Macy's earnings outlook is still below its Q4 forecast prior to President Trump's tariff announcement, but the net sales guidance is now ahead of the previous guidance.
FactSet analysts expect Macy's to report earnings of $1.79 per share for the year on $21.18 billion in sales.
Macy's Stock
Macy's stock rallied nearly 21% Wednesday, marking its first definitive move above its 200-day moving average since December.
Macy's stock has been largely in a downtrend since March 2024. Shares have tested resistance against the technical line over the past three weeks, as the stock has rebounded more than 66% from its April lows. Shares have now pared their 2025 decline to less than 4%.
You can follow Harrison Miller for more stock news and updates on X/Twitter @IBD_Harrison
