Investors Gaining Confidence in Macy’s Inc.

Confidence in Macy’s Inc. appears to be growing.

On Wednesday, TD Cowen raised the its price target on Macy’s shares to $25 from $20 and maintained its buy rating, triggering a nearly 4 percent jump in the share price. Macy’s stock was trading up over 2 percent to $25.90 midday on Thursday.

Macy’s Inc. got another vote of approval recently when Berkshire Hathaway revealed in a regulatory filing that it had purchased just over 3 million shares of the retailer, betting on a sector that’s largely been written off by investors far more interested in AI. The purchase by Berkshire was valued at $55 million and represents just over a 1 percent stake in Macy’s Inc.

Macy’s Inc. stock has been steadily creeping up over the past year. On June 25, 2025, it was trading at just over $11.

“It’s a good moment for the company overall and I don’t take it for granted,” Tony Spring, chairman and chief executive officer of Macy’s Inc., told WWD on June 3, when he recapped what was a stellar first quarter for the business, highlighted by a comparable sales gain of 3 percent overall, a 10.2 percent comparable sales gain at Bloomingdale’s, and increased profitability.

Spring cited steady traffic in stores despite the nation’s declining consumer confidence. The quarter’s results prompted the company to raise its outlook for 2026 sales and profits. He’s upbeat on back-to-school. “There’s a lot of variety in our kids’ assortment today that didn’t exist a couple of years ago. That bodes well for a strong back-to-school” season, Spring said.

Macy’s has been closing its weaker department stores, and investing in healthier stores, as part of its three-year “Bold New Chapter” strategy, introduced in February 2024. The strategy also calls for accelerating growth in the luxury sector, rolling out Bloomies stores, which are smaller, more specialized versions of the full-line Bloomingdale’s department stores; opening more Bluemercury stores, as well as building up its luxury offerings at both Macy’s and Bloomingdale’s.

Berkshire Hathaway’s stake in Macy’s is significant since it’s the first time that the huge conglomerate which invests in a wide range of companies has bought into a department store in about six decades, according to media reports. It’s possible that the Macy’s investment reflects a different approach being taken by Greg Abel, the CEO of Berkshire Hathaway, who recently succeeded Warren Buffett in the post.

Investing.com reported that TD Cowen hosted a meeting with Pamela Quintiliano, vice president of investor relations at Macy’s, and that TD Cowen “came away incrementally more encouraged by progress on Macy’s Bold New Chapter strategy.”