Macy’s Raises Sales Outlook Amid Strong Consumer Spending Surge

UPDATE: In a surprising turn of events, Macy’s has just raised its sales outlook for the remainder of the financial year, signaling that consumers are continuing to spend despite fears of an economic downturn. Chief Executive Tony Spring announced that the department store giant now expects annual sales to reach between $21.5 billion and $21.6 billion, exceeding previous estimates.

This announcement follows a remarkable 3% sales growth in the quarter ending November 1, 2025, marking Macy’s strongest performance in over three years. The latest data reveals a resilient consumer base willing to spend, although with more selective shopping habits.

Macy’s earnings report emphasizes that the company anticipates consumers to be “more choiceful” during the critical holiday season. The surge in spending is further illustrated by a record $11.8 billion spent online this Black Friday, according to Adobe Analytics, as shoppers capitalized on significant discounts offered by retailers.

Tony Spring stated, “As we enter the holiday season, we are well-positioned with compelling new merchandise and an omni-channel customer experience that delivers both inspiration and value.” This strategic focus on pricing and product variety has allowed Macy’s to cater to a diverse range of consumers, from bargain hunters to luxury shoppers. Notably, the upmarket Bloomingdale’s chain also experienced a sharp increase in net sales.

Despite concerns surrounding consumer confidence due to rising costs, the National Retail Federation reported that a record 203 million people shopped over the Thanksgiving, Black Friday, and Cyber Monday weekend, an increase from 197 million the previous year. This suggests that while some consumers may intend to spend less—reports indicate a potential 10% decrease in holiday spending—many are still willing to make purchases.

In a parallel development, Dollar Tree reported a robust 9.4% sales growth in its latest quarter, benefiting from consumers who are opting for budget options amid financial strain.

As the holiday shopping season heats up, all eyes will be on Macy’s and its competitors to see how these trends continue to evolve. Will consumers maintain their spending habits, or will rising costs lead to a shift in shopping behavior? The coming weeks will be crucial for retailers as they navigate this complex economic landscape.

Stay tuned for more updates as this story develops.