Core Insights - Macy's Inc. is experiencing an accelerating recovery driven by the execution of its Bold New Chapter strategy, which focuses on strengthening the core Macy's brand, scaling luxury offerings, and modernizing operations [1][5] Financial Performance - In the third quarter of fiscal 2025, Macy's reported a 3.2% increase in comparable sales, marking its strongest performance in 13 quarters, with adjusted earnings surpassing internal expectations [2][11] - The results were bolstered by better-than-expected sales, margin performance, and cost control, indicating strengthening business fundamentals despite a cautious consumer environment [2] Store and Brand Performance - The positive momentum at Macy's is attributed to focused investments and improved execution, with Go-Forward stores showing positive comparable sales growth due to enhanced merchandising and stronger omnichannel integration [3] - The Reimagine 125 locations outperformed the broader fleet, demonstrating that targeted upgrades in high-potential stores are driving higher traffic and engagement [3] - Bloomingdale's achieved its strongest comparable sales growth in over three years, benefiting from exclusive brand partnerships and strong demand in key categories [4] Operational Improvements - Macy's operational modernization, including investments in supply-chain automation and inventory discipline, has improved efficiency and margins, allowing for continued reinvestment in growth initiatives [5] - The disciplined execution of the Bold New Chapter strategy is accelerating Macy's recovery and strengthening its long-term competitive position [5] Valuation and Market Performance - Macy's shares have increased by 53.8% over the past six months, outperforming the industry growth of 40.8% [12] - The company is currently trading at a forward 12-month price-to-sales ratio of 0.25X, which is lower than the industry average of 0.48X [13] - The Zacks Consensus Estimate for Macy's fiscal 2025 earnings indicates a year-over-year decline of 16.7%, while fiscal 2026 estimates suggest a slight increase of 1.7% [15]