Macy's shares surged after the department store chain reported profits that topped analysts' estimates and unexpected growth in its same-store sales.

The company gave a cautious outlook, citing macroeconomic and geopolitical uncertainty.

Macy's latest results have some investors piling back into the stock.

Shares of Macy's (M) were up over 4% in recent trading after the department store chain posted quarterly profits that exceeded analysts' projections and unexpected growth in its same-store sales.

The New York-based company reported adjusted earnings of $1.67 per share on revenue that slipped 1.7% year-over-year to $7.92 billion in the fourth quarter. Both figures topped analysts' estimates compiled by Visible Alpha. Macy's also reported its comparable sales rose 1.8% when analysts had called for a decline.

Macy's gains suggest investors were pleased with its results, though the company gave a cautious outlook, citing macroeconomic and geopolitical uncertainty.

For fiscal 2026, Macy's sees adjusted EPS of $1.90 to $2.10, net sales of $21.4 billion to $21.65 billion, and comparable sales between a 0.5% decline and a 0.5% increase. All three metrics came in below estimates.

Macy's said it's taking a "prudent approach" to its outlook, given "macroeconomic and geopolitical factors that could influence discretionary spend." The company said its guidance assumes a larger impact from tariffs in the first half of the year than the second half, with the first quarter likely to be hardest hit.

Even with Wednesday's gains, Macy's shares have lost about a fifth of their value since the start of the year.

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