Core Insights - Macy's shares surged 18% as the department store chain indicated that its turnaround plan is beginning to yield positive results after years of poor sales performance [1] - The company reported quarterly sales growth for the first time in three years, excluding newly opened or closed locations [1] Turnaround Strategy - CEO Tony Spring launched a three-year plan in February, aiming to close 150 underperforming stores and reinvest in high-potential locations with improved product mix and displays [2] - The plan includes hiring more staff for fitting rooms, decluttering shoe departments, and introducing new brands such as DKNY and Khloe Kardashian's Good American [2] Financial Performance - Macy's expects annual adjusted profit per share to be between $1.70 and $2.05, an increase from previous expectations of $1.60 to $2.00 [3] - The annual net sales forecast was raised to $21.15 billion to $21.45 billion, up from $21 billion to $21.4 billion [3] - The company reported net sales of $4.81 billion, exceeding estimates of $4.76 billion, and adjusted earnings per share of 41 cents, beating projections of 18 cents [9] Sales Growth and Comparables - Comparable sales growth for Macy's was reported at 0.8%, marking its best performance in 12 quarters [8][11] - A group of 125 remodeled stores under the turnaround plan achieved comparable sales growth of 1.1% [9] - Bloomingdale's and Bluemercury brands showed stronger performance, with comparable sales growth of 3.6% and 1.2%, respectively [8] Tariff Impact - The estimated impact of tariffs on full-year gross margins was increased to 40 to 60 basis points, up from previous projections of 20 to 40 basis points [5] - The company is implementing "surgical" price increases to mitigate tariff costs, although unit sales have shown signs of softness due to price increases [5][6]