Macy's lifts forecasts amid turnaround efforts , shares soar

STORY: Shares of Macy's soared about 20% Wednesday morning after the retailer raised its annual sales and profit forecasts, signs that its turnaround strategy is paying off.

Macy's, which also owns Bloomingdale's and Bluemercury, has been leaning into its pricier labels that serve higher-income shoppers.

That's helped the retail chain offset the hit it's taken from lower-income shoppers, pressured by macroeconomic uncertainty triggered by President Trump's volatile tariff policy.

Macy's in May said it would increase prices selectively to soften the tariff costs from its reliance on manufacturing in China.

The company is benefiting from the turnaround plan that CEO Tony Spring introduced early last year, which included closing 150 Macy's stores by 2026, reinvesting in high-potential locations and improving product offerings and loyalty programs.

The retailer now feels confident about its recovery, even as holiday spending in the U.S. is expected to see its steepest drop since the pandemic, according to a PwC survey. Related Videos

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One analyst told Reuters that Macy's raising its forecasts was a "bold move" as a (quote) "overcrowded retail landscape and tighter budgets intensify competition."

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