Macy's stock surged 5.02% during pre-market trading on Wednesday, following the release of its fourth-quarter financial results.

The significant price movement appears driven by the company reporting quarterly earnings and sales that exceeded analyst expectations. Macy's posted Q4 adjusted earnings per share of $1.67, beating the Ibes estimate of $1.53, while net sales of $7.64 billion also came in above the $7.62 billion forecast. Furthermore, the company reported a 1.8% increase in comparable sales for the quarter and highlighted a return to annual comparable sales growth, with results exceeding its own guidance.

Additional positive factors included a $328 million pre-tax income benefit from the settlement of credit card interchange fee litigation matters and the announcement of an expansion of strategic initiatives to 75 additional stores, creating the "Reimagine 200" plan for 2026. While the company's full-year sales and adjusted EPS outlook were slightly below consensus estimates, the strong quarterly performance and strategic developments provided a bullish catalyst for investors.