Macy's Stock Surges to Second Highest Trading Volume in 2025 Despite Lowered Earnings Outlook

On May 28, 2025, Macy's Inc. (M) saw a trading volume of $213 million, marking a 41.79% increase from the previous day. The stock closed at $12.50, down 0.33% for the day.

Macy's reported its first-quarter fiscal 2025 results, with both top and bottom lines exceeding estimates. The company's net sales decreased by 5.1% to $4.6 billion, with comparable sales down 2.0% on an owned basis and down 1.2% on an owned-plus-licensed-plus-marketplace basis. Despite the decline in net sales, Macy's reported a net income of $38 million or $0.13 per share, down from $62 million or $0.22 per share in the prior-year quarter. Excluding items, adjusted net income for the quarter was $0.16 per share, compared to $0.27 per share in the year-ago quarter.

Macy's CEO Tony Spring highlighted the company's execution of its Bold New Chapter strategy, which improved customer experience and contributed to stronger-than-expected performance across all three of its nameplates. The company's credit card net revenues increased by 31.6% to $154 million, and Macy's Media Network net revenue grew by 8.1% to $40 million from last year. However, the company's selling, general, and administrative expense increased by 170 basis points to 39.9%, driven by lower net sales.

Looking ahead to fiscal 2025, Macy's has revised its annual outlook, projecting adjusted earnings in a range of $1.60 to $2.00 per share, down from the prior guidance range of $2.05 to $2.25 per share. The company continues to expect net sales between $21.0 billion and $21.4 billion, with comparable owned-plus-licensed-plus-marketplace sales decline of about 2.0 to 0.5 percent. The company cited several factors for the revision, including initial and current tariffs, moderation in consumer discretionary spending, and a heightened competitive promotional landscape.

JPMorgan analyst Matthew Boss adjusted the price target for Macy's stock, lowering it from $13.00 to $12.00, while continuing to hold a neutral rating. Nuveen Asset Management LLC increased its stake in shares of Macy's by 13.8% in the fourth quarter. Despite the company's lowered profit outlook for the full year, Macy's stock saw a positive reaction, with shares rising in Wednesday's trading session on the NYSE.