Macy’s (M) Stock Surges 6% as Berkshire Hathaway Takes $55M Position

Key Takeaways

• Berkshire Hathaway revealed a fresh investment in Macy’s valued at approximately $55 million, representing 3 million to 4 million shares held as of the end of March.
• Following the disclosure in Berkshire’s quarterly 13F report, Macy’s shares climbed roughly 5–6% during extended trading hours.
• Under new leadership from CEO Greg Abel, Berkshire increased its Delta Air Lines holdings by nearly 40 million shares while dumping positions in Amazon, Visa, Mastercard, and UnitedHealth.
• The department store chain is executing a restructuring plan, shuttering underperforming locations while doubling down on profitable stores, Bloomingdale’s, and Bluemercury.
• Management projects declining net sales for fiscal 2026 and has identified tariffs as a significant short-term challenge, with the most pronounced effects anticipated during the first quarter.

The investment conglomerate Berkshire Hathaway unveiled a fresh position in Macy’s valued at approximately $55 million in its latest 13F regulatory filing, which reflects holdings as of the end of March. The disclosure triggered a 5.9% rally in Macy’s shares during Friday’s after-hours session.

Macy’s, Inc., M

According to the filing, Berkshire accumulated roughly 3 to 4 million shares of the department store operator. While the investment represents a modest slice of Berkshire’s massive equity portfolio, any move by the company once helmed by Warren Buffett typically draws significant market interest.

The Macy’s purchase marks one of the first notable acquisitions under Greg Abel’s leadership, who assumed the CEO role in January following Buffett’s retirement.

Other Notable Portfolio Adjustments

Berkshire substantially increased its Delta Air Lines exposure, purchasing nearly 40 million additional shares, which lifted the airline’s stock approximately 3% in after-hours activity. The conglomerate also expanded its Alphabet stake while preserving substantial positions in flagship holdings including Apple, American Express, Coca-Cola, and Moody’s.

Conversely, Berkshire completely divested from Amazon, Visa, Mastercard, UnitedHealth, Aon, and Domino’s Pizza. UnitedHealth shares fell 2.4% in extended trading following the revelation. Several of these exited positions were likely overseen by Todd Combs, who departed Berkshire for JPMorgan Chase last month.

A crucial caveat: 13F reports are historical snapshots. Since this filing captures holdings from March 31, Berkshire’s present-day portfolio composition may have evolved considerably.

The Department Store Chain’s Transformation Continues

Macy’s is navigating a comprehensive strategic overhaul. Management is shuttering weak-performing locations while channeling resources toward high-volume stores. CEO Tony Spring has emphasized bringing in contemporary brands and enhancing employee investment.

Bloomingdale’s delivered impressive holiday season performance, recording comparable sales growth of 9.9%. Bluemercury similarly posted encouraging numbers. For the fourth quarter overall, Macy’s generated net sales of $7.6 billion, with comparable sales advancing 1.8%.

However, challenges remain visible on the horizon. Management’s forecast calls for fiscal 2026 net sales between $21.4 billion and $21.65 billion, representing a decline from the $21.8 billion anticipated in fiscal 2025. Adjusted earnings per share are projected in the $1.90 to $2.10 range.

Import tariffs represent a significant headwind. Since Macy’s procures the majority of its apparel, home products, and accessories from international suppliers, the company has cautioned that tariff pressures will intensify during the year’s first half, especially in the opening quarter.

The retailer maintained its quarterly dividend at 19.15 cents per share, scheduled for payment on July 1 to shareholders of record by June 15.

Competitor Kohl’s indicated in March that annual sales might remain flat or decline by as much as 2%, with CEO Michael Bender pointing to hesitant spending patterns among lower- and middle-income consumers. Macy’s faces comparable headwinds at its flagship brand, though Bloomingdale’s continues successfully targeting higher-income clientele.

Macy’s concluded the trading week positively, with the Berkshire revelation fueling after-hours momentum. The critical evaluation arrives with upcoming earnings reports, where stakeholders will scrutinize whether store enhancements and strategic emphasis on Bloomingdale’s and Bluemercury are translating into tangible revenue growth.

The post Macy’s (M) Stock Surges 6% as Berkshire Hathaway Takes $55M Position appeared first on Blockonomi.