Street View: Macy's forecast raise boosts investor confidence in turnaround

Macy's

04/12/2025 19:12

** Macy's M.N raised its annual sales and profit targets on Wednesday, as the department store operator begins to see returns from its months-long turnaround efforts

** At least 4 brokerages raised PT, median PT of 13 brokerages is $22 - data compiled by LSEG

     RESILIENT CONSUMER DEMAND DESPITE TARIFF PRESSURE

** Jefferies ("Buy", PT:$26) says tariff impacts have been better than expected, while core gross margin percentage also expanding

** Telsey Advisory Group ("Market perform", PT:$25) says rightsizing store base should improve long-term profitability

** Brokerage adds sales, profitability growth remain more limited due to macro pressures, traffic and tariff headwinds, and a competitive retail landscape

** TD Cowen ("Hold", PT:$21) notes Macy's is benefiting from consumer resilience within the majority of its middle-to-upper income consumer base

** Adds results provide cautious optimism around margin outlook heading into Q4

 (Reporting by Koyena Das)

 ((Koyena.das@thomsonreuters.com))