Macy’s Stock Skyrockets 31% This Week - Here’s Why Retail Just Went Rocket Fuel

Retail giant Macy's just pulled off a stunning 31% weekly surge that left Wall Street scrambling.

What's Driving the Rally?

Market momentum hit fever pitch as traditional retail showed unexpected strength. The 31% jump represents one of the sector's most dramatic single-week performances this year.

Behind the Numbers

Traders piled into positions as sentiment shifted dramatically. That double-digit percentage gain tells the whole story—when retail catches fire, even the skeptics have to pay attention.

Why This Matters Now

The move signals potential sector rotation as investors hunt for value outside tech. Because nothing gets traditional finance excited like a good old-fashioned retail revival—until the next earnings report, of course.

Upside surprises

That sort of catapult happens when a company obliterates performance expectations, and that's precisely what happened with Macy's on Wednesday.

Image source: Getty Images.

For its second quarter, the retailer's net sales amounted to $4.8 billion, which was down slightly from the $4.9 billion in the same period of 2024. Same-store sales, however, inched up by nearly 1% year over year. As for non-GAAP (adjusted) net income, it slid by 24% to $113 million ($0.41 per share).

Analysts were expecting far steeper declines, however. Their consensus for net sales was a bit under $4.7 billion, and that for adjusted profitability was $0.19 per share.

This meant a beat-and-raise quarter for Macy's, as it announced upward adjustments to its guidance for the entirety of 2025. The new top-line anticipation is a range of nearly $21.2 billion to almost $21.5 billion; previously management was modeling $21 billion to $21.4 billion. As for expected profitability, that's been pushed higher to between $1.70 and $2.05. Before, that range was $1.60 to $2.

Price-target bumping

Although no Macy's-following analysts have yet upgraded their recommendations on the stock, several weighed in with post-earnings price-target raises. One of the lifters was' Ashley Helgans, who maintained her buy recommendation on the company while cranking her fair-value assessment to $18.50 per share from the preceding $14.50.