10:25 AM EDT, 09/03/2025 (MT Newswires) -- Macy's (M) raised its full-year outlook on Wednesday as the department store operator reported fiscal second-quarter results above market expectations.

The company now anticipates adjusted earnings to come in between $1.70 and $2.05 per share for fiscal 2025, up from its previous projections of between $1.60 and $2. Sales are pegged at $21.15 billion to $21.45 billion, up from the prior guidance of $21 billion to $21.4 billion. The current consensus on FactSet is for non-GAAP EPS of $1.79 and sales of $21.18 billion.

Comparable owned-plus-licensed-plus-marketplace sales are forecast to be down 0.5% to 1.5% for the ongoing fiscal year, compared with the previous outlook for a 0.5% to 2% decline. Shares of the company jumped 19% in Wednesday trade.

Macy's said its improved outlook reflects its second-quarter results and the expected impact of tariffs on its gross margin in the third and fourth quarters. Consumers have remained resilient, but the macroeconomic environment remains fluid, Chief Financial Officer Tom Edwards said during an earnings call, according to a FactSet transcript. "As such, we believe it is prudent to maintain our cautious view on the consumer for the remainder of the year," Edwards added.

For the third quarter, the company anticipates an adjusted loss of $0.15 to $0.20 per share on sales of roughly $4.5 billion to $4.6 billion, Edwards said on the call. The Street is looking for a non-GAAP loss of $0.19 a share and sales of $4.46 billion. Comparable sales are expected to range from a roughly 1.5% decline to a 0.5% increase, according to the CFO.

"Our third-quarter and full-year guidance assumes that current tariff rates remain in place and provides flexibility to respond to consumer demand and the competitive landscape," Edwards told analysts. "Our guidance also assumes that bold new chapter initiatives continue to gain traction and we reinvest most of the savings from closed stores and distribution centers to support our long term growth."

US President Donald Trump reportedly said Tuesday that his administration will file an appeal with the Supreme Court on Wednesday in hopes of overturning the US Court of Appeals for the Federal Circuit's ruling last week that most of his tariffs are illegal.

Macy's posted adjusted EPS of $0.41 for the three months through Aug. 2, down from $0.53 the year before, but ahead of the average analyst estimate of $0.19. Sales declined to $4.81 billion from $4.94 billion, but were above the Street's view for $4.7 billion.

"Our teams achieved better than expected top- and bottom-line results during the second quarter, driven by our strongest comparable sales growth in 12 quarters, reflecting the strong performance in Macy's Reimagine 125 locations, Bloomingdale's and Bluemercury," Chief Executive Tony Spring said in the earnings release.

Comparable sales edged 0.8% higher on an owned basis. By brand, Macy's comparable sales inched 0.4% higher on an owned basis while Bloomingdale's gained 3.6%. Bluemercury comparable sales inclined 1.2%. Selling, general and administrative expenses fell to $1.94 billion from $1.97 billion last year, the company said.

Price: 15.98, Change: +2.49, Percent Change: +18.42