Macy's posts surprise profit with overhaul under new CEO resonating with shoppers

Core Insights - Macy's reported a surprise profit in the third quarter, marking its strongest comparable sales growth in over three years, indicating positive consumer response to its ongoing overhaul [1][4] - The company raised its financial guidance for the year following back-to-back quarterly increases in comparable sales, although the new guidance remains below last year's figures, suggesting caution regarding consumer sentiment [2][3] - Despite a challenging retail environment, Macy's demonstrated resilience with a 3.2% increase in comparable sales for the quarter ended November 1, following a 1.9% increase in the previous quarter [3][4] Financial Performance - Macy's net income for the quarter was $11 million, or 4 cents per share, with adjusted earnings per share at 9 cents, surprising analysts who expected a loss of 13 cents [6] - The company's net sales slightly decreased to $4.71 billion from $4.73 billion, attributed to the closure of underperforming stores, yet this figure exceeded analyst projections of $4.55 billion [6] Strategic Initiatives - Under the leadership of CEO Tony Spring, Macy's has focused on closing unprofitable stores and investing in brand modernization, enhancing customer service, and differentiating its luxury offerings [5][4] - The company aims to provide a compelling omni-channel customer experience, emphasizing hospitality and long-term profitable growth [4]