Macy's stock surged over 20% after second-quarter earnings exceeded Wall Street estimates, driven by improved in-store customer experiences.
The retailer's reimagined stores achieved record net promoter scores, focusing on product assortment, staffing, and visual storytelling.
Affluent consumers, particularly those from households earning over $100,000, are fueling Macy's retail comeback.
Macy's raised its full-year guidance but remains cautious of economic headwinds and potential tariff impacts.
Macy's stock jumped over 20% after the retailer announced second-quarter earnings that more than doubled Wall Street estimates, showing its high-stakes bet on a radically improved in-store customer experience is working. The company posted adjusted earnings of 41 cents per share against an anticipated 18 cents, sparking a significant rally.
The experience is paying off: The strategy is delivering measurable CX wins, with Macy's reporting its highest-ever second-quarter net promoter scores. That success is built on the "reimagining" of 125 stores, where a focus on better product assortment, increased staffing, and improved visual storytelling is directly resonating with shoppers.
Courting the high-end shopper: The comeback is being fueled by a specific demographic: affluent consumers. Over half of Macy's customers now come from households earning more than $100,000, a group CEO Tony Spring described as "resilient" in their spending on new fashion.
Confidence with a caution: The performance gave Macy's enough confidence to raise its full-year guidance after slashing it only a quarter ago. However, executives remain wary of economic headwinds, noting that while they are "adjusting prices," it will not be "broad-based" as they continue to navigate potential tariff impacts.
After rejecting a buyout offer to bet on its own comeback, Macy's is proving that a deep investment in the tangible, in-store customer experience—from service to product—is still a winning strategy in modern retail. Also on our radar, Macy's CEO says he reads every customer note he receives to get direct feedback for the company's turnaround. That focus on CX extends online, where the company is also investing in its digital experience to provide a richer, more product-driven shopping journey.
