Macy’s Inc. (M) witnessed a dramatic surge in its stock price, with shares climbing 13% in premarket activity following the announcement of its second-quarter financial results. The renowned department store chain not only surpassed analyst projections across key metrics but also responded by raising its financial outlook for the full year, signaling growing confidence in its ongoing turnaround strategy.

The company reported adjusted earnings per share of $0.41, a figure that more than doubled Wall Street’s consensus estimate of $0.19. Revenue also exceeded expectations, reaching $4.8 billion against forecasts of $4.69 billion. A critical indicator of retail health, comparable sales, showed marked improvement. On an owned basis, comps grew 0.8%, while the broader owned-plus-licensed-plus-marketplace measure saw a more robust 1.9% increase, representing the company’s strongest performance in this category in three years.

This positive momentum was echoed across Macy’s portfolio of brands. The luxury segment, Bloomingdale’s, continued its growth trajectory with its fourth consecutive quarter of gains, posting a 3.6% increase in owned comparable sales. Similarly, the beauty chain Bluemercury extended its impressive streak to 18 straight quarters of comparable sales growth. In a move that will please investors, Macy’s also highlighted its commitment to shareholder returns, noting that it allocated $100 million during the quarter through dividends and share repurchases.

Bolstered by these stronger-than-anticipated results, Macy’s management revised its fiscal 2025 guidance upward. The company now anticipates revenue to land between $21.15 billion and $21.45 billion, a raise from its previous forecast. Similarly, the guidance for adjusted earnings per share was lifted to a range of $1.70 to $2.05. This improved forecast, coupled with a 0.8% year-over-year reduction in merchandise inventories that points to more efficient operations, suggests a resilient path forward for the iconic retailer.