Shares of Macy's jumped as much as +4.3% to $19.20 Monday morning after Berkshire Hathaway disclosed it had quietly built a new position in the department-store chain during the first quarter. Berkshire revealed a 3-million-share stake worth about $55 million , giving investors their first signal that new CEO Greg Abel sees value in legacy retail. The move stands out because broader markets are softer today — this is a company-specific vote of confidence, not a rising tide.

  • Abel Is Reshuffling the Deck, and Macy's Made the Cut

The Macy's bet was part of a sweeping first-quarter overhaul under Abel, who took over from Warren Buffett at the start of the year.

Berkshire bought $15.94 billion and sold $24.09 billion of stocks in the period , dumping names like Visa, Mastercard, and Amazon. At less than 0.1% of Berkshire's portfolio, Macy's ranks as just the 27th-largest holding — a toe-in-the-water position, not a deep conviction call. Investors should calibrate their enthusiasm accordingly.

  • The Signal Matters More Than the Dollars

Many investors have followed Berkshire's portfolio closely over the years because they liked to copy Buffett's moves.

That may not hold going forward, since Abel has spent his career operating companies like Berkshire's collection of major utilities — not picking retail stocks. Still, the "Berkshire stamp" is driving a clear short-term sentiment boost in a stock that had drifted steadily lower, closing at $18.41 on Friday.

  • Macy's Trades Cheaply, but the Business Is Shrinking

Macy's trades at just 7.9× trailing earnings with a 4.16% dividend yield — deep value territory. But annual revenue fell 1.67% to $22.62 billion in the fiscal year ending January 2026 , and the retailer faces challenges with store closures and declining earnings forecasts. A price-to-sales ratio of just 0.22× signals the market sees limited growth ahead.

  • The Real Test Comes May 26

Macy's next earnings report is estimated for May 26 — just eight days out. That will reveal whether the turnaround efforts behind Macy's brand collaborations and store optimization are translating into results. A Berkshire position of this size can easily be unwound in one quarter if the numbers disappoint. For now, the headline is bullish, but the position size whispers caution.