Macy's (M) stock jumped 6.60% 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 resilience 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. The retailer's net income for the quarter stood at $87 million, while comparable sales on an owned basis increased by 0.8%, indicating positive momentum in its core business.
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 pre-market surge.