Macy's, Inc. (NYSE:M) shares were under pressure on Wednesday following a quarterly profit forecast that fell short of some investor expectations, despite the retailer posting strong underlying sales ahead of the holiday shopping season.
The department store operator reported net revenue of $4.7 billion for the third quarter, down 0.6% from a year earlier but 5% above analyst expectations.
Adjusted earnings per share came in at $0.09, turning positive from a prior expectation of a $0.20 loss, while comparable sales rose 2.5% on an owned basis.
Bloomingdale’s led the charge with comps up 8.8%, marking the best performance in 13 quarters.
“As we enter the holiday season, we are well-positioned with compelling new merchandise and an omni-channel customer experience that delivers both inspiration and value,” said Tony Spring, CEO of Macy’s.
Macy’s also raised its full-year guidance. Adjusted EPS is now projected at $2 to $2.20, up from a previous range of $1.70 to $2.05, while net sales are expected between $21.48 billion and $21.63 billion. Comparable sales across its owned, licensed, and marketplace channels are now expected to be flat to up 0.5% versus 2024, an improvement from the prior guidance of a decline of 1.5% to 0.5%.
Other key metrics showed continued momentum: Macy’s go-forward comparable sales rose 2.7%, Bloomingdale’s posted a 9% increase on an O+L+M basis, and Bluemercury saw a 1.1% gain. The company also raised its adjusted EBITDA margin outlook to 7.8%–8%, up from 7.4% to 7.9%.
Shares of Macy’s fluctuated on Wednesday, settling around 0.8% lower by midday.