Macy's stock surged 5.5% in pre-market trading on Wednesday, following the release of its third-quarter results that exceeded analyst expectations.

The company reported Q3 adjusted EPS of $0.09, beating the estimated $-0.14, and net sales of $4.71 billion, surpassing the $4.62 billion estimate. Comparable sales also showed strong growth, rising 2.5% on an owned basis and 3.2% on an O+L+M basis.

Despite a mixed full-year outlook, with FY adjusted EPS and net sales below some estimates, the positive Q3 performance and commitment to closing underproductive stores have boosted investor confidence.