Macy’s (M) Shares Rise 6% Following New Investment From Berkshire Hathaway

TLDR

• Berkshire Hathaway revealed a new investment in Macy’s, valued at approximately $55 million, with a holding of about 3 million to 4 million shares as of March 31.
• Macy’s stock experienced a rise of around 5–6% in after-hours trading following the announcement, which was made public through Berkshire’s quarterly 13F filing.
• Under the leadership of new CEO Greg Abel, Berkshire also increased its stake in Delta Air Lines by nearly 40 million shares, while divesting from Amazon, Visa, Mastercard, and UnitedHealth.
• Macy’s is currently undergoing a strategic repositioning, which includes closing less successful stores and increasing investment in high-traffic locations, Bloomingdale’s, and Bluemercury.
• The company anticipates a decrease in net sales for fiscal year 2026 and has identified tariffs as a near-term challenge, with the most significant impact expected in the first quarter.

(SeaPRwire) –   Berkshire Hathaway’s most recent 13F filing, detailing its holdings as of March 31, indicated a new investment in Macy’s valued at approximately $55 million. This news led to a surge of about 5.9% in Macy’s stock during after-hours trading on Friday.

Macy’s, Inc., M

The filing showed that Berkshire held an estimated 3 to 4 million shares of Macy’s. While this position is relatively small within Berkshire’s overall portfolio, any involvement from Warren Buffett’s former company typically garners significant attention.

This marks Berkshire’s initial substantial move in Macy’s since Greg Abel assumed the role of CEO in January, following Warren Buffett’s transition.

Other Notable Transactions by Berkshire

Berkshire also acquired nearly 40 million shares of Delta Air Lines, which saw a rise of approximately 3% in after-hours trading. The company expanded its Alphabet holdings and maintained its core investments in Apple, American Express, Coca-Cola, and Moody’s.

On the disposition side, Berkshire exited positions in Amazon, Visa, Mastercard, UnitedHealth, Aon, and Domino’s Pizza. UnitedHealth’s stock fell 2.4% in after-hours trading following this news. It is possible that these divested positions were managed by Todd Combs, who departed Berkshire for JPMorgan Chase in April.

It is important to note that 13F filings are retrospective. The data reflects holdings as of March 31, meaning Berkshire’s current positions may differ.

Macy’s Turnaround Efforts Continue

Macy’s is in the midst of a comprehensive strategic overhaul. The company is closing underperforming stores and reallocating capital towards locations with higher customer traffic. CEO Tony Spring has emphasized the addition of more relevant brands and increased investment in staff training.

Bloomingdale’s reported a strong holiday quarter, with comparable sales increasing by 9.9%. Bluemercury also demonstrated robust performance. Macy’s reported total net sales of $7.6 billion for the fourth quarter, with comparable sales up by 1.8%.

However, the outlook for the coming period presents challenges. Macy’s projects fiscal year 2026 net sales to be between $21.4 billion and $21.65 billion, a decrease from the $21.8 billion anticipated for fiscal year 2025. Adjusted earnings per share are forecast to be in the range of $1.90 to $2.10.

Tariffs pose a significant concern, as Macy’s sources a substantial portion of its clothing, home goods, and accessories internationally. The company has cautioned that the impact of tariffs will be most pronounced in the first half of the year, particularly in the first quarter.

The company maintained its quarterly dividend at 19.15 cents per share, payable on July 1 to shareholders of record as of June 15.

Rival Kohl’s indicated in March that its full-year sales could remain flat or decline by up to 2%, with CEO Michael Bender citing cautious spending habits among lower- and middle-income consumers. Macy’s is experiencing similar pressures within its core brand, while Bloomingdale’s continues to attract a more affluent customer base.

Macy’s concluded the week on a positive note, with the news of Berkshire’s investment driving gains in after-hours trading. The next critical evaluation will occur during the earnings reports, where investors will be looking for evidence that store enhancements and the strategic focus on Bloomingdale’s and Bluemercury are translating into actual sales growth.