Macy's(US:M) CNBC·2025-12-03 11:57Core Insights - Macy's has exceeded Wall Street's sales expectations for three consecutive quarters, indicating a positive trend in its turnaround strategy [1][4] - The company has raised its full-year sales and earnings outlook following a better-than-expected fiscal third quarter [2][4] Financial Performance - Adjusted earnings per share are now expected to be between $2 and $2.20, an increase from the previous range of $1.70 to $2.05 [2] - Projected net sales for the year are between $21.48 billion and $21.63 billion, up from the prior outlook of $21.15 billion to $21.45 billion [2] - Comparable sales growth is expected to be flat to approximately 0.5%, a significant improvement from earlier expectations of a decline between 0.5% and 1.5% [3] Strategic Initiatives - The company is focusing on improving sales consistency, particularly for its Macy's brand, which has lagged behind Bloomingdale's and Bluemercury [7] - Investments in staffing, merchandise, and store displays have been increased, with a strategy initially rolled out at 50 locations now expanded to 125 [7] - Macy's plans to permanently close about 150 underperforming stores by early 2027 while expanding Bloomingdale's and Bluemercury locations [8] Recent Quarterly Results - For the fiscal third quarter, net income fell to $11 million, or 4 cents per share, down from $28 million, or 10 cents per share, in the previous year [9] - Adjusted earnings per share were reported at 9 cents, surpassing the expected loss of 14 cents [10] - Revenue for the quarter was $4.71 billion, exceeding expectations of $4.62 billion, although it decreased from $4.74 billion in the year-ago quarter [10][11] Brand Performance - Bloomingdale's showed the strongest performance with a 9% year-over-year increase in comparable sales [12] - Bluemercury's comparable sales increased by 1.1% [12] - Macy's shares have risen approximately 34% year-to-date, outperforming the S&P 500's 16% gains [12]