Retail giant Macy's raises earnings forecast, yet issues caution over unpredictable consumer behavior

Retail giant Macy's boosts yearly projection and records its strongest comparable sales increase in over three years, indicating that consumers continue to spend amid worries about inflation and import taxes.

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2025 September 13 . 5:22 AM

2 min read

Retail Giant Macy's Revises Optimistic Forecast, Yet Remains Cautious About Unpredictable Shopper... — Retail Giant Macy's Revises Optimistic Forecast, Yet Remains Cautious About Unpredictable Shopper Trends

Retail giant Macy's raises earnings forecast, yet issues caution over unpredictable consumer behavior

Macy's Inc., the retail giant that owns Bloomingdale's, Bluemercury, and its namesake stores, has announced a robust performance in the second quarter of its fiscal year. The company's net sales and comparable sales for the same period have surpassed analysts' expectations.

The strong performance was particularly evident in Bloomingdale's, Bluemercury, and the 125 targeted Macy's stores. These stores showed a marked improvement, contributing significantly to the overall growth.

This positive trend is a result of the strategic focus by Macy's CEO Tony Spring since 2024. He has been working on improving high-potential stores by increasing staffing, marketing, and updating displays.

The company has raised its annual net sales outlook to as much as $21.45 billion, a significant increase from previous estimates. Macy's Inc. has also revised its projected annual decline in comparable sales. The decline is now expected to be between 0.5% and 1.5%, a marked improvement from the 2% decline projected in May.

However, Macy's Inc. has warned of a more cautious consumer in the second half of the year. This caution is reflected in the company's shares, which have decreased by 20% this year up to Tuesday's close.

Despite the recent success, Macy's Inc. has faced ongoing struggles to find a formula for growth. The company has experienced quarterly revenue decline for 13 quarters in a row, a challenge it continues to grapple with.

To address this, Macy's Inc. plans to close approximately 150 underperforming locations by 2026. This move is part of a larger strategy to focus on high-potential stores and improve their performance.

It's important to note that this article does not provide information about the financial performance of the stores that are not targeted for upgrades. Additionally, the article does not mention any new strategies or initiatives beyond the ones mentioned in the context of the targeted stores.

The strong fiscal second-quarter performance contrasts with Macy's ongoing struggle to find a formula for growth. The company continues to work on improving its business model and finding ways to attract and retain customers in an increasingly competitive retail landscape.