Macy’s exceeded sales expectations for the third consecutive quarter and reported its strongest growth in over three years. The company raised its full-year sales and earnings outlook, now expecting adjusted earnings per share between $2 and $2.20 and net sales between $21.48 billion and $21.63 billion.

Macy’s predicts flat to 0.5% comparable sales growth, a positive shift from the previous expectation of a year-over-year decline. The retailer attributes the change to store openings, closures, and the inclusion of merchandise from third-party online marketplace.

Despite an annual net sales decrease compared to the previous year, Macy’s anticipates a challenging holiday season due to selective consumer spending and higher tariffs. CEO Tony Spring remains cautiously optimistic about the fourth quarter.

Macy’s reported earnings per share of 9 cents adjusted, surpassing an expected loss of 14 cents. Revenue totaled $4.71 billion, exceeding the anticipated $4.62 billion. The company is focusing on enhancing sales for its namesake brand and implementing strategic initiatives to improve performance.

Read more at CNBC: Macy’s (M) earnings Q3 2025