Macy's on Wednesday raised its annual targets for the second time this year and posted surprise quarterly profit, as the department store operator begins to see returns from its months-long turnaround efforts. However, Macy's shares reversed course to fall nearly 6% in premarket trading after the company said its guidance assumed a "more choiceful" consumer in the key holiday shopping period as inflation pressures spending on non-essential goods.

Macy's expects 2025 net sales to be between $21.475 billion and $21.625 billion, compared with its earlier forecast of $21.15 billion to $21.45 billion. It also sees annual adjusted earnings per share to be between $2 and $2.20, up from $1.70 to $2.05. "It appears that they are striking a more cautious tone based on the guide," said Charles Grom

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