Macy's (M) stock is soaring over 20% in pre-market trading on Wednesday, following the release of its impressive second-quarter 2025 financial results and an upward revision of its full-year guidance. The department store chain's performance exceeded analysts' expectations, demonstrating the success of its turnaround efforts in a challenging retail environment.

The company reported second-quarter sales of $4.81 billion, surpassing the IBES estimate of $4.76 billion. Macy's also delivered a strong bottom line, with adjusted earnings per share (EPS) of $0.41, significantly beating the IBES estimate of $0.18. Notably, the retailer posted comparable sales growth of 1.9% on an owned plus licensed basis, marking its first positive comp sales after 12 consecutive quarters of declines.

Investors were particularly encouraged by Macy's revised outlook for the fiscal year. The company raised its full-year adjusted EPS guidance to a range of $1.70-$2.05, up from the previous forecast of $1.60-$2.00. Additionally, Macy's increased its projected net sales for the year to between $21.15 billion and $21.45 billion, compared to the earlier outlook of $21.0 billion to $21.4 billion. This optimistic forecast, coupled with the strong quarterly performance, has fueled investor confidence and contributed to the stock's significant pre-market surge.