Core Viewpoint - Macy's has been upgraded to a Zacks Rank 1 (Strong Buy) due to an upward trend in earnings estimates, which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Impact - The Zacks rating system focuses on the consensus measure of EPS estimates from sell-side analysts, which reflects the company's changing earnings picture [1][2]. - Changes in future earnings potential, as indicated by earnings estimate revisions, are strongly correlated with near-term stock price movements, particularly influenced by institutional investors [4]. Business Outlook for Macy's - The rising earnings estimates and the Zacks rating upgrade suggest an improvement in Macy's underlying business, which could lead to increased stock prices as investors respond positively [5][10]. - For the fiscal year ending January 2026, Macy's is expected to earn $2.08 per share, with a 12.5% increase in the Zacks Consensus Estimate over the past three months [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [7]. - Only the top 5% of Zacks-covered stocks receive a "Strong Buy" rating, indicating superior earnings estimate revisions and potential for market-beating returns [9][10].

We recently published 10 Stocks Losing Their Fire. Macy’s Inc. (NYSE:M) is one of the worst performers on Thursday. Macy’s extended its losing streak to a third straight day on Thursday, shedding 0.62 percent to close at $22.32 apiece as investors took path from its earnings performance in the third quarter of the year. At intra-day trading, the stock dropped by as much as 3.6 percent. Pixabay/Public Domain In an updated report, Macy’s Inc. (NYSE:M) said net income dwindled by 60.7 percent to $11 mill ...

The rise of online shopping has completely reshaped consumer behavior, offering more convenience and access to nearly any product without the need to step inside a store. As e-commerce grows, traditional department stores continue to vanish, raising the question of whether the retail industry is moving closer to a future where brick-and-mortar shopping becomes extinct. Ongoing economic uncertainty has also made shoppers more cautious of their spending, leading to weakening sales and reduced foot traffic f ...

Core Insights - Target Corporation is launching a limited-edition men's soap called "Not Santa" in collaboration with Dr. Squatch, available nationwide starting December 7, 2025 [1][5] - The product features Kris K. from Target, a viral sensation known for his holiday-themed marketing, and aims to enhance the festive shopping experience [2][4] Product Details - "Not Santa" is a sandalwood-scented soap made with over 98% natural origin ingredients, designed to evoke a warm and joyful holiday spirit [3][4] - Priced at $7.99, the soap is marketed as an affordable gift option for various demographics, including husbands, dads, and friends [5][6] Marketing Strategy - The collaboration aims to engage consumers through sensory experiences, particularly focusing on pleasant scents to improve mood and reduce stress during the holiday season [4] - Kris K. from Target will feature in a new marketing campaign, appearing in various settings to promote the product and enhance brand visibility [8] Availability and Purchase Options - "Not Santa" soap will be available in all Target stores and on Target.com, with multiple purchasing options including same-day services and free shipping for orders over $35 [5][7] Company Background - Target Corporation operates nearly 2,000 stores and has a long-standing commitment to community support, donating 5% of its profits to local initiatives [9]

Core Insights - Macy's reported its strongest growth in over three years during the third quarter, marking its third consecutive quarterly sales beat, indicating a successful turnaround strategy [1][5] Company Strategy - Macy's is implementing a turnaround strategy focused on reducing the number of locations while enhancing the quality of remaining stores, planning to close around 150 low-performing locations by 2027, with nearly 70 closures already this year [2] - The "Reimagine" campaign has revitalized 125 stores, which is about one-third of the 350 locations the company aims to keep open globally [3] Financial Performance - Comparable sales growth for the third quarter increased by 3.2%, or 3.4% when excluding non-strategic locations, with Bloomingdale's achieving a 9% year-over-year sales growth [5] - Macy's has raised its annual net sales guidance to a range of $21.48 billion to $21.63 billion, up from a previous range of $21.15 billion to $21.45 billion, although this projection is slightly below last year's figures due to anticipated store closures [5] Consumer Outlook - Despite an upgraded outlook, Macy's anticipates a "more choiceful consumer" in the fourth quarter, influenced by tariff-induced price hikes and rising economic anxiety, although its middle to upper-income consumer base has shown resilience [3]

Core Insights - Macy's affluent customers are showing resilience and engagement as the holiday shopping season begins, according to CEO Tony Spring [1] - The company's growth is primarily attributed to its luxury department store, Bloomingdale's, although there are concerns that "aspirational" customers may not continue their spending habits [1] - Macy's reported a 3% year-over-year increase in comparable store sales, marking its largest gain in three years [1] Financial Performance - Macy's quarterly revenue slightly decreased year-over-year to $4.7 billion, surpassing analysts' consensus estimate of $4.6 billion [1] - Adjusted earnings reached $26 million, more than double the $11 million reported a year earlier and significantly above the expected loss of $37 million [1] - Comparable store sales at Bloomingdale's increased by 9% year-over-year, indicating strong performance in the luxury segment [1] Market Outlook - Macy's has raised its full fiscal year outlook following third-quarter results that exceeded expectations, although it anticipates consumers will be "more choiceful" in the fourth quarter [1] - The company is focusing on attracting the "luxury customer of the future" by expanding its range of luxury brands [1] - The affluent consumer segment is currently driving economic activity, but there are indications that spending may not be sustainable in the long term [1]

Core Insights - Macy's sales have reached their highest level in over three years, indicating significant progress in its turnaround strategy initiated in 2024 [1] - The latest report shows that sales at stores planned to remain open increased for the second consecutive quarter, while overall sales across the Macy's brand grew at the fastest rate in 13 quarters [1] Group 1: Sales Performance - Bloomingdale's and Bluemercury, also owned by Macy's Inc., continued to show growth, with Bloomingdale's achieving five straight quarters of comparable-store sales growth and Bluemercury reaching 19 consecutive quarters of growth [2] - Strong demand for "giftable" categories such as sweaters, pajamas, sneakers, and handbags has been noted, with Coach bags being particularly popular during Black Friday, mostly selling at full price [5] - Retailers, including Macy's, have maintained promotions at the same or lower levels than the previous year, allowing for more new products to be sold at full price due to healthier inventories [8] Group 2: Strategic Initiatives - Macy's is implementing a strategy that includes closing about 150 underperforming stores by the end of 2026 to achieve sustainable and profitable sales [9] - The company has faced challenges in adapting to rapid industry changes and competition, which has historically impacted its performance [11] - To attract younger customers, there is a need for Macy's to enhance product offerings and create engaging in-store events, as emphasized by industry experts [13][14]

Core Viewpoint - The U.S. stock market is hovering near record levels amid mixed reactions to profit reports from various companies, including Macy's and Marvell Technologies [1] Company Summaries - Macy's reported its earnings, contributing to the mixed market reactions [1] - Marvell Technologies also released its profit report, which influenced investor sentiment [1]

Macy's Inc (NYSE:M) stock is up 0.4% to trade at $22.28, brushing off a morning in the red and pivoting higher midday. The retailer posted adjusted third third-quarter earnings of nine cents per share on $4.71 million in revenue, both of which surprised to the upside. Raising concerns initially was a muted holiday Q4 outlook that came in below analyst estimates, but the stock has since moved higher. Macy's stock is 33% higher year-to-date and hit a multi-year high of $23.14 just yesterday. Recent consolida ...

Core Insights - Macy's, Inc. reported third-quarter fiscal 2025 results with both top and bottom lines exceeding Zacks Consensus Estimates, despite a decrease in net sales and an increase in earnings compared to the previous year [1][3] - The company has raised its fiscal 2025 outlook, reflecting confidence in its strong balance sheet and diversified brand portfolio [2][12] Financial Performance - Adjusted earnings were reported at 9 cents per share, surpassing the Zacks Consensus Estimate of a loss of 13 cents, and increased from 4 cents in the year-ago quarter [3] - Net sales reached $4,713 million, exceeding the consensus estimate of $4,595 million, although this represented a 0.6% decline from the previous year [4] - Comparable sales increased by 2.5% on an owned basis and 3.2% on an owned-plus-licensed-plus-marketplace basis [4][5] Brand Performance - Comparable sales for the Macy's brand rose 1.4% on an owned basis and 2% on an owned-plus-licensed-plus-marketplace basis [6] - Bloomingdale's brand saw a significant increase in comps of 8.8% on an owned basis and 9% on an owned-plus-licensed-plus-marketplace basis, marking its fifth consecutive quarter of growth [6] - Bluemercury brand reported a 1.1% increase in comps on an owned basis, achieving its 19th consecutive quarter of growth [6] Margins and Expenses - Gross margin for the fiscal third quarter was 39.4%, beating the estimate of 39%, but down 20 basis points from the previous year due to tariff impacts [7] - Selling, general and administrative (SG&A) expenses were $2.02 billion, down 1.9% year over year, reflecting cost discipline and savings from closed stores [8][9] - Adjusted EBITDA was reported at $285 million, down 4.4% from $273 million in the year-ago quarter, with an adjusted EBITDA margin of 5.8%, up 20 basis points year over year [9] Financial Snapshot - The company ended the fiscal third quarter with cash and cash equivalents of $447 million, long-term debt of $2.43 billion, and shareholders' equity of $4.33 billion [10] - Merchandise inventories increased by 0.7% year over year, and net cash provided by operating activities was $247 million for the first nine months of fiscal 2025 [10] Share Repurchase and Asset Sales - In the third quarter, Macy's repurchased 2.8 million shares for $50 million, with $1.2 billion remaining under its $2 billion share repurchase authorization [11] - Asset sale gains were reported at $12 million, down from $66 million in the prior period, as the company continues to focus on closing underperforming stores [11] Fiscal 2025 Guidance - The company updated its annual outlook, raising net sales expectations to $21.48-$21.63 billion from $21.15-$21.45 billion [12][13] - Comparable owned-plus-licensed-plus-marketplace sales are now expected to be flat to up 0.5%, an improvement from the previous expectation of a decline [13] - Adjusted earnings per share are anticipated to be between $2.00 and $2.20, up from the prior range of $1.70-$2.05 [14]