Macy’s Stock Surges 20.7% on Strong Q2 Earnings and Raised Guidance

Macy's shares skyrocketed 20.7% Wednesday after the department store chain reported second-quarter earnings that far exceeded Wall Street expectations. The retailer posted adjusted earnings of $0.41 per share on $4.81 billion in revenue, beating analyst estimates of $0.18 and $4.76 billion respectively.

The company raised its full-year guidance, now forecasting adjusted earnings between $1.70 and $2.05 per share, up from its previous $1.60 to $2.00 range. Revenue expectations also inched upward to $21.15-$21.45 billion. This improvement comes just one quarter after Macy's cut its outlook, citing tariff-related pricing pressures.

CEO Tony Spring acknowledged ongoing challenges from import duties but highlighted progress in store experiences and product mix as mitigating factors. The strong performance occurred against a backdrop of modest gains in major indices, with the S&P 500 and Nasdaq climbing 0.5% and 1% respectively.

While the earnings beat demonstrates Macy's operational improvements, the retailer continues facing structural headwinds in an e-commerce dominated retail landscape. Store updates and merchandise selection remain key focus areas for the 163-year-old department store chain.