Macy’s lifts sales forecast as shoppers keep spending

Core Insights - Macy's has raised its sales forecasts for the financial year, expecting full-year sales between $21.5 billion and $21.6 billion, indicating strong consumer spending despite economic concerns [1] - The company reported a sales growth of approximately 3% in the quarter ending Nov. 1, marking its strongest performance in over three years [1] Consumer Behavior - The U.S. retail economy shows that consumers are still willing to spend but are becoming more selective in their purchases [2] - A record $11.8 billion was spent online during Black Friday, reflecting consumer engagement with discounts offered by retailers [2] Strategic Initiatives - Macy's CEO Tony Spring emphasized the importance of price cuts and a compelling product offering as the company enters the holiday season [3] - The increase in sales is attributed to Macy's ability to cater to a diverse consumer base, including both discount shoppers and luxury buyers, with significant sales growth at Bloomingdale's [3] Company Developments - Since joining Macy's in 2024, CEO Spring has focused on investing in high-performing stores by increasing staff and advertising as part of a turnaround strategy [4] - Despite low consumer confidence and predictions of reduced holiday spending, the National Retail Federation reported a rise in shoppers during the Thanksgiving weekend, with 203 million people participating, up from 197 million the previous year [5] Market Trends - Dollar Tree reported a 9.4% sales growth in its latest quarter, benefiting from consumers opting for budget-friendly options [5]