Macy's reverses course as muted holiday forecast clouds surprise quarterly profit

Macy's

03/12/2025 14:20

Updates

** Shares of department store chain Macy's  reverse course to fall about 4% to $21.85 in premarket trading

** Expects Q4 net sales between $7.35 billion and $7.50 billion, with the midpoint below analysts' average estimates of $7.46 billion - as per LSEG data

** Estimates Q4 adjusted EPS between $1.35 and $1.55, with the midpoint below estimates of $1.55

** Says holiday guidance assumes shoppers to be "more choiceful" as still-high inflation pressures spending on non-essential goods

** "It appears that they are striking a more cautious tone based on the guide," says Charles Grom, analyst at Gordon Haskett Equity Research

** Still, Macy's raises FY25 net sales to be between $21.475 billion and $21.625 billion, compared with its prior forecast of $21.15 billion to $21.45 billion

** Reports surprise profit of 9 cents per share for Q3 vs estimates of 14 cents loss

** As of last close, stock up ~34% YTD

 (Reporting by Sanskriti Shekhar in Bengaluru)

 ((Sanskriti.Shekhar@thomsonreuters.com))