Shares of department store giant Macy's surged on Wednesday, March 18, 2026, after the company reported stronger-than-expected fourth-quarter financial results. The stock jumped approximately 9% in premarket trading and closed the day up more than 7%, providing a significant boost after a year-to-date decline of 23%.
The key driver was a beat on both earnings and revenue. Macy's reported adjusted earnings per share (EPS) of $1.67 for Q4, surpassing the Wall Street consensus estimate of $1.57. Revenue came in at $7.64 billion, a 1.7% year-over-year decline but still ahead of the $7.62 billion analysts had forecast. The revenue drop was largely attributed to planned store closures from the prior fiscal year.
A major positive surprise was the performance of comparable-store sales, a critical retail metric. Comparable sales rose 1.8% during the quarter, dramatically outperforming analyst expectations for a 0.9% decline. This marked the third consecutive quarter of positive comparable sales growth, suggesting a potential shift in momentum for the retailer under CEO Tony Spring's "Bold New Chapter" revitalization strategy.
The growth was led by Macy's higher-end banners. While the core Macy's brand saw a modest 0.4% increase, Bloomingdale's comparable sales surged 8.5%, and Bluemercury added 2.5%, indicating success in attracting more affluent customers.
However, the company's forward guidance was more cautious. For the full fiscal year 2026, Macy's expects net sales between $21.4 billion and $21.65 billion, which straddles analyst estimates. More notably, the company projected adjusted EPS in the range of $1.90 to $2.10, which falls below the consensus estimate of $2.20 at both the midpoint and high end.
Management cited a "prudent approach" due to macroeconomic and geopolitical risks, including pressure on discretionary consumer spending and tariffs. The company flagged a "meaningful impact" from tariffs, particularly in the first half of 2026, as it sources heavily from China. It assumes this pressure will ease later in the year. Guidance also includes an estimated $145 million sales impact from ongoing store closures.
