Key Points
It wasn’t that long ago that Macy’s (NYSE: M) was something of a poster child for the retail apocalypse. The company was a supposedly stuck-in-the-past operator burdened with an outdated brick-and-mortar store model.
That once unpopular poster child was looking quite appealing recently, according to data compiled by S&P Global Market Intelligence: The retailer’s stock powered 31% higher over the week. Encouraging quarterly results were the foundation for that big leap in price.
Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More »
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 Jefferies‘ 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.
Should you invest $1,000 in Macy’s right now?
Before you buy stock in Macy’s, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Macy’s wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004… if you invested $1,000 at the time of our recommendation, you’d have $678,148!* Or when Nvidia made this list on April 15, 2005… if you invested $1,000 at the time of our recommendation, you’d have $1,052,193!*
Now, it’s worth noting Stock Advisor’s total average return is 1,065% — a market-crushing outperformance compared to 186% for the S&P 500. Don’t miss out on the latest top 10 list, available when you join Stock Advisor.
See the 10 stocks »
*Stock Advisor returns as of August 25, 2025
Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Jefferies Financial Group. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
#Macys #Stock #Zoomed #Higher #Week