Macy's: Successful Turnaround And Solid Macro Support Further Upside

Macy’s has executed a successful turnaround, with shares doubling and a further 13% upside to a $26-27 fair value target. Strong consumer spending, resilient labor markets, and strategic store revamps underpin M's positive same-store sales and raised EPS guidance ($2.00-$2.20). The 'Bold New Chapter' restructuring, luxury market expansion, and Bluemercury/Bloomingdale’s outperformance drive incremental growth and margin resilience. With a pristine balance sheet, ongoing buybacks, and a secure 3.2% dividend, I reiterate a 'buy' rating despite moderating return expectations. Shares of Macy’s ( M ) have been an excellent performer over the past year, basically doubling in value. Last year, retailers were slammed by fears around tariffs, given the significant exposure of the apparel industry to imports, but that impact has been