Street View: Macy's finds momentum in upscale brands
M•Macy's gains on raised outlook
Shares of Macy's M.N up ~4% at $21.33 in afternoon trading.
The department store raised its forecasts on Thursday as affluent shoppers continued to spend at Bloomingdale's and Bluemercury, though reinvestment of tariff refunds into growth initiatives pressured its current-quarter earnings outlook.
Analysts see premiumization strategy working
Median PT of 14 brokerages covering the stock is $23.50, according to data compiled by LSEG.
- Jefferies ("buy", PT: $26) says Macy's strong quarter and raised outlook were driven by continued momentum at Bloomingdale's and improving performance at the Macy's banner, while tariff-refund reinvestment is masking underlying earnings strength in the second half.
- J.P. Morgan ("neutral", PT: $27) says co's conservative third-quarter outlook leaves room for upside, citing stronger-than-guided sales trends, momentum at reimagined stores and continued strength at Bloomingdale's.
- TD Cowen ("hold", PT: $25) says broad-based growth across Bloomingdale's and Bluemercury shows momentum remains intact, and views management's decision to reinvest tariff refunds into growth initiatives positively.
- BTIG ("neutral") says Macy's premiumization strategy is gaining traction, with higher-priced brands, stronger assortments and rising average selling prices helping drive sales and profitability.
