Macy's, Inc. (M) shares are poised for a stronger open on Monday after Berkshire Hathaway revealed a new position in the department store chain late Friday. The conglomerate's quarterly 13F filing, released May 15, showed it held 3,038,355 Macy's shares as of March 31, valued at approximately $55 million. The disclosure sparked a 6.3% surge in after-hours trading, following a regular session close at $18.41, up 0.55%.
The stock had a difficult week, dropping roughly 5.5% from its May 8 close of $19.48. Monday's session saw a 4.1% decline before a modest recovery on Friday. The Berkshire news could help stabilize sentiment, but analysts caution that the broader retail environment remains challenging.
Berkshire's Portfolio Moves
The filing also revealed that Berkshire increased its stake in Delta Air Lines and made other portfolio adjustments under new CEO Greg Abel, who succeeded Warren Buffett. While the Macy's position is relatively small for Berkshire, it signals a vote of confidence in the retailer's turnaround strategy.
Macy's has been executing a plan to focus on fewer, better-performing stores while investing more in its stronger locations, including Bloomingdale's and Bluemercury. In the fourth quarter, comparable sales rose 1.8% overall, with Bloomingdale's same-store sales up 9.9%. The luxury brand benefited from market share gains amid Saks Global's bankruptcy proceedings.
Guidance and Challenges
Despite these bright spots, Macy's cut its fiscal 2026 outlook. The company now expects net sales between $21.4 billion and $21.65 billion, below the $21.8 billion anticipated for fiscal 2025. Comparable sales growth is projected between -0.5% and +0.5%, with adjusted diluted EPS forecast at $1.90 to $2.10, down from $2.15 for fiscal 2025.
CEO Tony Spring described the environment as uncertain in March, telling the Associated Press, “there’s more unknown than there is known.” He emphasized the need to focus on controllable factors. The cautious tone aligns with broader retail sentiment, as Walmart and Kohl's also issued guarded guidance.
Analysts at Telsey Advisory Group noted that “rightsizing the store base should improve long-term profitability,” but near-term pressures from macro headwinds, tariffs, soft traffic, and promotional intensity remain. The SPDR S&P Retail ETF (XRT) fell to $79.09 from $80.38 on Friday, reflecting sector weakness.
For traders, the key level to watch is the $19.48 area, representing the prior week's close. If Macy's can reclaim and hold that level, the Berkshire news may signal a trend reversal. Failure to do so could mean the bounce is merely a headline-driven pop. Premarket volume will be a critical indicator of conviction.
