Macy’s lifts sales forecast as shoppers keep spending

Macy’s has raised its sales forecasts for the rest of the financial year, in the latest sign that shoppers are still opening their wallets despite widespread fears over a consumer downturn.

The biggest department store chain in the U.S. said it expects full-year sales to be between $21.5 billion and $21.6 billion, higher than previous guidance, while it also saw sales growth of about 3% in the quarter ending Nov. 1, its strongest in more than three years.

The results appeared to reinforce a growing theme in the U.S. retail economy: that consumers are still willing to spend money, they’re just more picky. Macy’s earnings statement said the lift in guidance “continues to assume the consumer is more choiceful in the fourth quarter of 2025.”

Consumers also turned out in droves to spend a record $11.8 billion online this Black Friday, per Adobe Analytics, with many taking advantage of a heavy round of discounting from retailers.

Macy’s chief executive Tony Spring hinted at Macy’s also putting an emphasis on price cuts, saying: “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.”

The department store said its increase in sales was down to its ability to cater to all consumers, from discount hunters to those buying luxury goods, as net sales also rose sharply at its upmarket Bloomingdale’s chain.

Since joining Macy’s in 2024, Spring has sought to invest in its best-performing stores by increasing staff numbers and advertising at the locations, as part of a wider turnaround plan.

It comes after widespread reports that consumer confidence is low amid rising costs this year, with some surveys even suggesting people intend to spend 10% less this holiday season than they did last year.

But the National Retail Federation said that a record 203 million people shopped during the Thanksgiving Day, Black Friday and Cyber Monday long weekend, up from 197 million last year.

Separately on Wednesday, Dollar Tree posted 9.4% sales growth in its most recent quarter, as the budget retailer benefitted from consumers who are trading down.