Macy's Stock Soars 13.05% on Turnaround Strategy

On September 3, 2025, Macy's stock surged by 13.05% in pre-market trading, marking a significant rise that caught the attention of investors and analysts alike.

Macy's recent performance can be attributed to its strategic turnaround efforts, which include shedding underperforming banners and focusing on higher-income shoppers. The retailer's decision to lean into its pricier labels has helped offset the impact of pressured consumer spending amid macroeconomic uncertainty. This strategy has been particularly effective in boosting demand across its Bloomingdale's and Bluemercury chains.

CEO Tony Spring's turnaround plan, proposed in February 2024, has been instrumental in driving these positive changes. The plan involves closing 150 Macy's stores by 2026, reinvesting in high-potential locations, reducing operational costs, and improving product offerings and loyalty programs. These initiatives have contributed to a more resilient demand and a positive outlook for the company.

Despite facing import tariff risks due to its reliance on manufacturing in China, Macy's has managed to navigate these challenges. The company has selectively increased prices to soften the tariff impact on margins, demonstrating its ability to adapt to external pressures. Macy's full-year outlook assumes a more "choiceful" consumer in the second half of 2025, reflecting the company's cautious yet optimistic stance.

Macy's has reported its thirteenth consecutive net sales decline for the second quarter ended August 2, with a 2.5% fall to $4.81 billion. However, the company still managed to beat analysts' average estimates, indicating a positive trajectory despite the challenges. The retailer also reported comparable sales growth of 1.9% on an owned plus licensed basis, following 12 quarters of declines. This growth highlights the effectiveness of Macy's turnaround efforts and its ability to adapt to changing market conditions.