Macy's Stock Rockets 21% Today CEO Says Consumer Sentiment Has Remained Strong So Far, But Warns Of Selective Spending Ahead

2025-09-03 03:20:52

(MENAFN- AsiaNet News)

Macy's (M) CEO Tony Spring said on Wednesday that customers across all its banners have remained resilient through the first half of the year and the second quarter to date.

“However, given the uncertainty regarding the impact of tariffs on demand, we believe it's prudent to continue to incorporate a more choiceful consumer into our guidance for the remainder of the year,” Spring said on a post-earnings call.

Shares of Macy's were up over 21% in the early trading session after the department store chain raised its annual profit and sales forecast.

Retail sentiment on Macy's improved to 'extremely bullish' from 'bullish' territory, with message volumes at 'extremely high' levels, according to data from Stocktwits.

M sentiment and message volume September 3, 2025, as of 9:25 am ET | Source: Stocktwits

The company now expects fiscal 2025 net sales of $21.15 billion to $21.45 billion, compared with the previous forecast of $21.0 billion to $21.4 billion. Macy's forecast adjusted earnings per share (EPS) of $1.70 to $2.05, up from the prior expectation of $1.60 to $2.00.

Telsey Advisory Group's analyst Dana Telsey said that the company's efforts to rightsize the store base should improve long-term profitability. However, she noted that near-term visibility for sales and profitability growth remains limited due to macro pressure, traffic, and tariff headwinds, as well as a competitive and potentially promotional retail landscape.

Macy's CFO, Thomas J. Edwards, said the company took proactive markdowns on remaining early spring products to maintain healthy inventories, and the flow-through of Macy's products, which were brought under the 145% tariffs, primarily impacted the most recent quarter.

The company's second-quarter net sales of $4.81 billion topped Wall Street expectations of $4.70 billion, according to data compiled by Fiscal AI. Its adjusted EPS came in at $0.41, compared with estimates of $0.19.

Macy's shares have declined over 3% this year and gained about 7% in the last 12 months.

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