Investing.com -- Macy's Inc. (NYSE: M) shares have jumped 9% premarket on Wednesday after the retailer reported fourth-quarter results that exceeded Wall Street expectations and provided revenue guidance above analyst estimates, despite concerns about tariff headwinds.

The company posted adjusted earnings per share of $1.67 for the fourth quarter, beating the analyst consensus of $1.56. Revenue reached $7.6 billion, surpassing the $7.46 billion estimate and declining 1.7% YoY. Comparable sales rose 1.8%, driven by strength across all nameplates, with Bloomingdale's delivering its best holiday performance on record with comparable sales up 9.9%.

Macy's projected fiscal 2026 revenue of $21.4 billion to $21.65 billion, with a midpoint of $21.53 billion that exceeds the analyst consensus of $21.11 billion. However, the company's adjusted EPS guidance of $1.90 to $2.10, with a midpoint of $2.00, fell short of the $2.21 consensus estimate.

"As we wrap up year two of the Bold New Chapter, I'm pleased with the growth and progress we're making against our strategic priorities," said Tony Spring, chairman and chief executive officer of Macy's, Inc.

For the full fiscal year 2025, Macy's reported adjusted EPS of $2.32, exceeding its guidance range of $2.00 to $2.20. Comparable sales increased 1.5% for the year, marking a return to positive growth. The company's go-forward business, which excludes stores slated for closure, posted comparable sales growth of 1.7%.

Gross margin declined 50 basis points to 35.2% in the fourth quarter, primarily due to a 60 basis point impact from tariffs. The company generated $1.4 billion in operating cash flow and returned $448 million to shareholders through dividends and share repurchases during fiscal 2025.