Macy’s Rallies on Surprise Sales Growth

Macy’s shares climbed in afternoon trading on Wednesday, rising about 3.9% to $17.61. The move came after the department store chain reported fourth-quarter results that beat Wall Street forecasts.

For the quarter, Macy’s posted net sales of $7.64 billion and adjusted earnings of $1.67 per share. While both figures were slightly lower than a year earlier, they exceeded analyst estimates compiled by Visible Alpha.

Investors appeared to respond positively to the earnings beat after a stretch of weakness in the stock. Even with Wednesday’s rally, Macy’s is down 22.6% since the beginning of the year and trades 27.1% below its 52-week high of $24.15 set in December 2025.

A key driver of the share-price reaction was Macy’s comparable, or same-store, sales performance. The retailer reported a 1.8% increase in comparable sales for the fourth quarter, defying analyst expectations for a decline.

Same-store sales are a closely watched retail metric because they strip out the impact of new or closed locations. The positive surprise suggested stronger underlying demand than many had anticipated.

The unexpected sales growth contributed to quarterly profits that topped projections and encouraged some investors to reenter the stock, according to the reporting.

Alongside its results, Macy’s issued guidance for fiscal 2026 that the company described as prudent. It cited macroeconomic and geopolitical uncertainty that could affect discretionary consumer spending.

Macy’s expects adjusted earnings per share of $1.90 to $2.10, net sales between $21.4 billion and $21.65 billion, and comparable sales ranging from a 0.5% decline to a 0.5% increase. All three metrics were below analyst estimates.

The company’s outlook assumes a larger impact from tariffs in the first half of the year than in the second, with the first quarter expected to be the most affected.

Macy’s shares have been volatile, registering 24 daily moves greater than 5% over the past year. The latest rally follows a 3.7% drop 19 days earlier after a stronger-than-expected U.S. Producer Price Index reading raised concerns about inflation.

That PPI report showed a 0.5% rise in January, driven in part by a 0.8% increase in final demand services and a 2.5% jump in margins for trade services. The data suggested higher costs being passed through by wholesalers and retailers, including potential tariff effects.

With recent data indicating rising consumer loan delinquencies, investors have been concerned that stretched households may cut back on discretionary purchases, pressuring retailers such as Macy’s.

Despite the latest one-day gain, Macy’s longer-term share performance has been weak. A hypothetical $1,000 investment in Macy’s five years ago would now be worth about $940.71.

The combination of a strong recent quarter, cautious forward guidance, and a challenging macro backdrop helps explain why the stock reacted positively to the immediate results yet remains well below recent highs.