U.S. retailer Macy’s reported a decline in both profit and sales in its latest quarter. Net income reached $87 million, equal to 31 cents per share. That compares with $150 million, or 53 cents per share, in the same quarter last year. Adjusted earnings of 41 cents per share beat Wall Street estimates of 19 cents.
Sales slipped to $4.99 billion from $5.09 billion a year earlier. However, analysts expected only $4.7 billion, so Macy’s performed better than forecasts. Moreover, comparable sales across all stores, including licensed businesses, grew 1.9 percent. This figure marked the strongest performance in three years.
Shares of U.S. retailer Macy’s jumped 10 percent before the market opened. The sharp rise reflected investor optimism about the company’s improved outlook. Macy’s now expects earnings per share between $1.70 and $2.05, up from $1.60 to $2. Wall Street had projected $1.79 per share. Therefore, Macy’s raised guidance impressed investors even as overall profits declined.
The company also adjusted its sales forecast for the year. Macy’s now anticipates revenue between $21.15 billion and $21.45 billion, higher than its previous estimate of $21 billion to $21.4 billion. Analysts had predicted $21.18 billion in sales. Consequently, management showed confidence in steady customer demand despite ongoing economic challenges.
Macy’s faces higher costs due to U.S. tariffs, particularly those tied to imports from China. About 20 percent of products originated from China at the end of the last fiscal year. Private brands sourced 27 percent of items from China, down from 32 percent a year earlier. Furthermore, the company continues to diversify supply chains and remove products when pricing becomes unsustainable.
The retailer also highlighted progress in store modernization. Macy’s invested heavily in revamping 125 locations, which achieved comparable sales growth of 1.4 percent. This surpassed the 1.2 percent gain across all Macy’s stores. As a result, management sees modernization as a key driver for long-term growth.
Although Macy’s remains cautious about the broader economic environment, strong comparable sales demonstrated resilience. The company continues to enhance customer service, refine merchandise, and diversify sourcing. With these efforts, U.S. retailer Macy’s positions itself to manage external pressures while building customer loyalty.
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