Macy's (M) shares gained ground in pre-market trading Monday after a regulatory filing revealed that Berkshire Hathaway had built a new position in the department store chain. The disclosure, made in a 13F filing with the Securities and Exchange Commission on Friday, showed Berkshire held 3.04 million shares of Macy's as of March 31, worth approximately $55 million at that time.
The stock closed Friday at $18.41, up 0.55%, and traded at $18.99 in pre-market activity, with 128,170 shares changing hands. The pre-market move represents a gain of about 3.2% from Friday's close, though such moves can be volatile due to lower liquidity.
Berkshire's stake is relatively small for the Omaha-based conglomerate, but the market often pays close attention to its moves, especially when it involves a struggling retailer with real estate assets and a turnaround story. The filing also revealed that Berkshire added to its position in Delta Air Lines and increased its holdings in Alphabet, while exiting positions in Amazon, UnitedHealth, Visa, and Mastercard.
Macy's is set to report first-quarter results on June 3, with a conference call at 8 a.m. ET led by Chairman and CEO Tony Spring and COO/CFO Tom Edwards. The company has been executing its 'Bold New Chapter' plan, which includes revamping stores and focusing on higher-margin brands. In its fourth quarter, comparable sales rose 1.8%, with Bloomingdale's posting a 9.9% gain and Bluemercury up 1.3%.
However, the outlook remains cautious. Macy's has guided fiscal 2026 net sales in the range of $21.4 billion to $21.65 billion, below the $21.8 billion expected for fiscal 2025. Adjusted diluted earnings per share are forecast at $1.90 to $2.10, compared to $2.15 last year. CEO Tony Spring acknowledged to the Associated Press in March that there is 'more unknown than there is known,' pointing to risks from tariffs, rising fuel costs, and the Iran conflict.
The broader retail environment is also challenging. Walmart and Kohl's have issued cautious guidance, citing tariffs, soft traffic, and heavy promotional activity. These headwinds could weigh on Macy's results, potentially limiting the upside from the Berkshire news.
Macy's also declared a quarterly dividend of 19.15 cents per share, payable July 1 to holders of record June 15. The stock has a market capitalization of roughly $4.9 billion. While the Berkshire stake is a positive signal, the company's ability to navigate macroeconomic pressures will be key for traders ahead of the earnings report.
