Core Insights - Macy's has raised its sales forecasts for the financial year, expecting full-year sales between $21.5 billion and $21.6 billion, indicating strong consumer spending despite economic concerns [1] - The company reported a sales growth of approximately 3% in the quarter ending Nov. 1, marking its strongest performance in over three years [1] Consumer Behavior - The U.S. retail economy shows that consumers are still willing to spend but are becoming more selective in their purchases [2] - A record $11.8 billion was spent online during Black Friday, reflecting consumer engagement with discounts offered by retailers [2] Strategic Initiatives - Macy's CEO Tony Spring emphasized the importance of price cuts and a compelling product offering as the company enters the holiday season [3] - The increase in sales is attributed to Macy's ability to cater to a diverse consumer base, including both discount shoppers and luxury buyers, with significant sales growth at Bloomingdale's [3] Company Developments - Since joining Macy's in 2024, CEO Spring has focused on investing in high-performing stores by increasing staff and advertising as part of a turnaround strategy [4] - Despite low consumer confidence and predictions of reduced holiday spending, the National Retail Federation reported a rise in shoppers during the Thanksgiving weekend, with 203 million people participating, up from 197 million the previous year [5] Market Trends - Dollar Tree reported a 9.4% sales growth in its latest quarter, benefiting from consumers opting for budget-friendly options [5]

分组1 - Macy's reported quarterly earnings of $0.09 per share, exceeding the Zacks Consensus Estimate of a loss of $0.13 per share, and showing an increase from earnings of $0.04 per share a year ago, resulting in an earnings surprise of +169.23% [1] - The company achieved revenues of $4.71 billion for the quarter ended October 2025, surpassing the Zacks Consensus Estimate by 2.56%, although this represents a slight decline from year-ago revenues of $4.74 billion [2] - Macy's shares have increased approximately 34.1% since the beginning of the year, outperforming the S&P 500's gain of 16.1% [3] 分组2 - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] - The trend of estimate revisions for Macy's was favorable ahead of the earnings release, resulting in a Zacks Rank 2 (Buy) for the stock, indicating expected outperformance in the near future [6] - The current consensus EPS estimate for the upcoming quarter is $1.57 on revenues of $7.37 billion, and for the current fiscal year, it is $2.00 on revenues of $21.38 billion [7] 分组3 - The Retail - Regional Department Stores industry, to which Macy's belongs, is currently ranked in the top 3% of over 250 Zacks industries, suggesting a positive outlook for the sector [8]

Financial Data and Key Metrics Changes - Macy's Inc reported net sales of $4.7 billion, a decrease of 0.6% year-over-year, primarily due to the closure of 64 non-Go-Forward stores, which contributed approximately $160 million to sales in the previous year [23][24] - Comparable sales increased by 3.2%, marking the strongest growth in 13 quarters, with Go-Forward comparable sales up 3.4% [22][23] - Adjusted EPS was $0.09, significantly above the guidance range of a loss of $0.15-$0.20 and higher than last year's $0.04 [7][27] - Core adjusted EBITDA was $273 million, or 5.6% of total revenue, exceeding guidance of 3.3%-3.7% [27][35] Business Line Data and Key Metrics Changes - Macy's nameplate achieved 2% comparable sales growth, while Go-Forward Macy's saw a 2.3% increase, and Reimagined 125 stores rose by 2.7% [8][23] - Bloomingdale's reported a 9% increase in comparable sales, its best performance in 13 quarters, with net sales rising by 8.6% [15][24] - Bluemercury experienced a 1.1% increase in comparable sales, driven by dermatological skincare and expanded brand partnerships [19][24] Market Data and Key Metrics Changes - The retail landscape is evolving, with consumers becoming more discerning in their spending habits, seeking curated product assortments and seamless omnichannel experiences [8][20] - Macy's Thanksgiving Day Parade attracted over 34 million viewers, setting a new record and highlighting the company's strong brand presence [12][13] Company Strategy and Development Direction - The company is focused on its "Bold New Chapter" strategy, which includes strengthening the Macy's nameplate, differentiating luxury offerings, and modernizing operations [5][8] - Macy's aims to enhance customer experience through improved product curation and operational efficiency, with a strong emphasis on omnichannel retailing [8][11] - The company is committed to closing underperforming stores while investing in growth areas to drive sustainable profitability [27][35] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of its middle to upper-income customer base and the effectiveness of its inventory and marketing strategies [20][66] - The company anticipates a strong holiday season, supported by a compelling mix of categories and brands, despite a cautious outlook on consumer behavior [30][31] - Management acknowledged the ongoing impact of tariffs but emphasized proactive mitigation efforts to minimize their effects on margins [49][50] Other Important Information - The company opened a new distribution center in China Grove, North Carolina, which incorporates automation and AI to enhance delivery efficiency [19][29] - Macy's returned $350 million to shareholders through dividends and share repurchases, with approximately $1.2 billion remaining on its buyback authorization [28][29] Q&A Session Summary Question: Can you speak to traction with reimagined store initiatives and November comp trends? - Management noted positive growth in reimagined stores, with consistent traffic and improved average unit retail (AUR) [40][41] Question: What are the key drivers for sustaining momentum into 2026? - Key drivers include product assortment, omnichannel balance, and shedding underperforming stores, with a focus on mitigating tariff impacts [44][46] Question: How confident is the company in the consumer outlook compared to 90 days ago? - Management expressed increased confidence in strategy execution and inventory quality, despite a cautious approach to guidance [66][67] Question: Can you elaborate on pricing increases and consumer response? - Pricing on new products has had little impact on consumer spending, with strong demand across various price points [82][84] Question: How is the credit business trending? - The credit business has seen a significant increase in applications and revenue, indicating strong customer engagement [85][86] Question: What is the status of the store closure program? - The company closed 64 stores last year and remains committed to optimizing its store fleet, with updates expected in the fourth quarter [91][92]

Financial Data and Key Metrics Changes - Macy's Inc. reported net sales of $4.7 billion, a decrease of 0.6% year-over-year, attributed to the closure of 64 non-Go Forward stores, which contributed approximately $160 million to sales in the previous year [22][23] - Comparable sales increased by 3.2%, marking the strongest growth in 13 quarters, with Go Forward comparable sales rising by 3.4% [21][22] - Adjusted EPS was $0.09, significantly above the guidance range of a loss of $0.15-$0.20 and higher than last year's $0.04 [7][26] Business Line Data and Key Metrics Changes - Macy's nameplate achieved 2% comparable sales growth, while Go Forward Macy's saw a 2.3% increase, and Reimagined 125 stores reported a 2.7% rise in comparable sales [8][22] - Bloomingdale's experienced a 9% increase in comparable sales, its best performance in 13 quarters, while Bluemercury recorded a 1.1% growth in comparable sales [15][19] Market Data and Key Metrics Changes - The retail landscape is evolving, with consumers becoming more selective in their spending, seeking curated assortments and seamless omnichannel experiences [8][20] - Macy's reported a positive response to improvements in customer experience, reflected in the highest third-quarter Net Promoter Score on record [9] Company Strategy and Development Direction - The company is focused on its "Bold New Chapter" strategy, which includes strengthening the Macy's nameplate, differentiating luxury offerings, and modernizing operations [5][8] - Macy's aims to enhance its product assortment and customer experience, with a commitment to bringing new brands and categories to the forefront [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of their customer base and the effectiveness of their strategies, despite acknowledging a more cautious consumer environment [20][30] - The company anticipates a strong holiday season, supported by a compelling mix of categories and brands, and is optimistic about the fourth quarter performance [29][30] Other Important Information - The company opened a new distribution center in China Grove, North Carolina, which incorporates automation and AI to enhance delivery efficiency [19][28] - Macy's returned $350 million to shareholders through dividends and share repurchases, with approximately $1.2 billion remaining on its buyback authorization [27] Q&A Session Summary Question: Can you speak to traction with reimagined store initiatives and November comp trends? - Management noted positive growth in reimagined stores, with consistent traffic and improved average unit retail (AUR) [38][39] Question: What are the key drivers for sustaining momentum into 2026? - Key drivers include product assortment, omnichannel balance, and shedding underperforming stores, with a focus on mitigating tariff impacts [42][44] Question: How confident is the company in the consumer outlook compared to 90 days ago? - Management expressed increased confidence in their strategy and performance, despite a cautious approach to guidance [63][64] Question: Can you elaborate on pricing increases and consumer response? - Pricing on new products has had little impact on consumer appetite, with strong promotional strategies in place [80][81] Question: What is the status of the store closure program? - The company closed 64 stores last year and remains committed to optimizing its store fleet, with further details expected in the fourth quarter call [89]

Financial Data and Key Metrics Changes - Macy's Inc. reported net sales of $4.7 billion, a decrease of 0.6% year-over-year, attributed to the closure of 64 non-Go Forward stores, which contributed approximately $160 million to sales in the previous year [22][23] - Comparable sales increased by 3.2%, marking the strongest growth in 13 quarters, with Go Forward comparable sales rising by 3.4% [21][22] - Adjusted EPS was $0.09, significantly above the guidance range of a loss of $0.15-$0.20 and higher than last year's $0.04 [6][25] Business Line Data and Key Metrics Changes - Macy's nameplate achieved 2% comparable sales growth, while Go Forward Macy's saw a 2.3% increase, and Reimagined 125 locations reported a 2.7% rise in comparable sales [8][22] - Bloomingdale's experienced a 9% increase in comparable sales, its best performance in 13 quarters, while Bluemercury recorded a 1.1% growth in comparable sales [15][18] Market Data and Key Metrics Changes - The retail landscape is evolving, with consumers becoming more selective in their spending, seeking curated assortments and seamless omnichannel experiences [7][8] - Macy's reported a positive response to improvements in customer experience, reflected in the highest third-quarter Net Promoter Score on record [9] Company Strategy and Development Direction - The company is focused on its "Bold New Chapter" strategy, which includes strengthening the Macy's nameplate, differentiating luxury offerings, and modernizing operations [5][8] - Macy's is enhancing its product curation and customer experience, aiming to attract a broader customer base and improve store performance [11][12] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the resilience of its middle to upper-income customer base and noted strong visibility on controllable factors such as inventory discipline and improved customer experiences [19][20] - The company anticipates a strong holiday season, supported by effective marketing campaigns and a compelling mix of products [29][30] Other Important Information - The company opened a new distribution center in China Grove, North Carolina, which incorporates automation and AI to enhance delivery efficiency [18][28] - Macy's plans to return $350 million to shareholders through dividends and share repurchases, with approximately $1.2 billion remaining on its buyback authorization [26][27] Q&A Session Summary Question: Can you speak to traction with reimagined store initiatives? - Management noted positive growth in Reimagined 125 locations, with consistent traffic and improved average unit retail (AUR) [35] Question: What are the key drivers for sustaining momentum into 2026? - Key drivers include a diverse product assortment, a balanced omnichannel approach, and shedding underperforming stores [37][39] Question: How confident is the company in the consumer outlook compared to 90 days ago? - Management expressed increased confidence in strategy execution and inventory quality, despite a more cautious guidance approach [46][47] Question: Can you elaborate on pricing increases and consumer response? - Pricing on new products has had little impact on consumer appetite, with strong sales performance expected [52][53] Question: What is the status of the store closure program? - The company closed 64 stores last year and remains committed to optimizing its store fleet, with further details to be provided in the next call [56][57]

Core Insights - Macy's exceeded Wall Street expectations in its recent quarterly report, indicating that consumer spending remains strong despite economic concerns [1] - The company raised its earnings guidance for the fiscal year, reflecting confidence in continued consumer demand [2] Financial Performance - Macy's reported third-quarter revenue of $4.7 billion, surpassing the market expectation of $4.56 billion [1] - Adjusted earnings per share were $0.09, significantly better than the analyst forecast of -$0.13 [1] - Comparable sales increased by 3.2%, exceeding the company's previous guidance [1] Strategic Outlook - The company raised its full-year adjusted earnings guidance to a maximum of $2.20 per share, up from a previous maximum of $2.05 [1] - Sales guidance was also increased to a range of $21.5 billion to $21.6 billion, higher than prior estimates [1][2] Market Position and Challenges - Despite strong performance, Macy's stock fell over 6% in pre-market trading, influenced by positive reports from other retailers [1] - The company faces challenges in regaining market share lost to discount retailers and e-commerce platforms since 2012 [2] - Macy's plans to close approximately 150 underperforming stores by 2026 [2] Consumer Trends - Management expects consumer spending momentum to continue, particularly during Black Friday and Cyber Monday [2] - Analysts noted that Macy's is gaining market share from competitors like Saks Global, especially in women's apparel [3]

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Financial Performance Highlights - Macy's Inc's comparable owned-plus-licensed-plus-marketplace (O+L+M) sales increased by 3.2% compared to 3Q24[8, 44] - Adjusted diluted earnings per share (EPS) was $0.09[9, 10] - Net sales were $4.7 billion, a decrease of 0.6% compared to 3Q24, but increased by 2.9% excluding the impact of store closures[40] - Comparable owned sales increased by 2.5% compared to 3Q24[42] - Go-Forward business comparable O+L+M sales increased by 3.4% compared to 3Q24[46] Brand Performance - Macy's nameplate comparable O+L+M sales increased by 2.0% compared to 3Q24[14, 49] - Macy's Go-Forward business comparable O+L+M sales increased by 2.3% compared to 3Q24[14, 49] - Bloomingdale's comparable O+L+M sales increased by 9.0% compared to 3Q24[17, 49] - Bluemercury comparable owned sales increased by 1.1% compared to 3Q24[24, 49] Operational Improvements - Inventory increased by 0.7% compared to 3Q24[29, 50] - Order-to-ship days improved by 11.3%[29, 30] Guidance - The company expects FY25 comparable O+L+M sales to be approximately flat to +0.5% vs FY24 and adjusted diluted EPS to be $2.00 to $2.20[62]

Earnings Overview - The Q3 earnings season has been solid, with 95% of S&P 500 companies reporting results and an expected 13.4% increase in earnings per share, marking the fourth consecutive quarter of double-digit growth [2][28] - Initial expectations were lower, with analysts predicting a 7.9% increase in earnings per share as of September 30 [3] Retail Sector Insights - Macy's reported Q3 revenue of $4.7 billion, slightly above estimates, with adjusted earnings per share of $0.04, surpassing the expected loss of $0.14 [5][6] - Macy's raised its 2025 sales outlook to a range of $21.48 billion to $21.63 billion, reflecting a more optimistic consumer sentiment [7] - American Eagle Outfitters saw a stock surge of over 11% after reporting a profit per share of $0.53, exceeding estimates, and a 6% year-over-year revenue increase [10][11] Technology and Cybersecurity - CrowdStrike reported Q3 revenue of $1.23 billion, a 22% increase year-over-year, and raised its full-year revenue guidance to $4.79 billion to $4.80 billion [15][16] - Okta's Q3 revenue rose 12% to $742 million, beating estimates, but the stock fell despite the positive results [18] - MongoDB's revenue reached $628.3 million, a 19% year-over-year increase, and the company raised its full-year revenue guidance to $2.434 billion to $2.439 billion [26][27] Market Reactions - Despite solid earnings, market reactions have been more subdued, with stocks of companies beating earnings estimates rising only 0.4% on average, below the five-year average of 0.9% [28][29] - Companies missing earnings estimates saw an average stock decrease of 5%, significantly higher than the five-year average decrease of 2.6% [30] Other Notable Earnings - Marvell reported earnings per share of $2.20 on revenue of $2.07 billion, but the stock slid 6% after announcing the acquisition of Celestial AI for $3.25 billion [19][20] - Dick's Sporting Goods reported earnings of $2.07 per share, missing estimates, but raised its full-year earnings guidance [44][45] - Abercrombie & Fitch's stock surged over 18% after reporting earnings per share of $2.36, exceeding estimates, driven by strong sales at the Hollister brand [46][48]

Core Insights - Macy's reported an unexpected profit and growth in a key sales metric, indicating positive performance despite market fluctuations [1] Financial Performance - The company achieved an unexpected profit, which suggests stronger-than-anticipated operational efficiency and demand [1] - Growth in a key sales metric reflects an improvement in consumer spending and brand strength [1] Market Reaction - Following the announcement, Macy's stock experienced a decline in premarket trading, indicating a potential market correction after recent gains [1]