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Electra launches defense business unit

SUMMARY:

  • .aero launched a new unit to serve military needs
  • The move follows successful Air Force tests and an $85M contract to advance the .
  • The company plans flight tests of its EL9 model in 2027 and has 2,200 provisional orders

-based aviation startup Electra.aero on Wednesday announced that it has launched a new defense business unit to capitalize on growing military demand for aircraft that can fly long distances without a runway.

The unit will focus on developing its EL9 model for the . The EL9 is a nine-passenger hybrid ultra-short aircraft that can take off and land with just 150 feet of runway. The company says the model opens thousands of new access points, ranging from small, underserved airports to nontraditional sites such as parking lots or fields.

“The military can no longer solely rely on trucks or helicopters to conduct logistics missions over long distances, and we need to preserve the efficiency of existing airlift assets,” said Electra Defense Vice President and General Manager Donn Yates in a statement. “The multi-mission [ultra-short takeoff and landing] EL9 is the sprinter van of the skies, enabling the military to execute agile combat employment to deliver people, power and payloads at the last tactical leg. We look forward to continuing our work with our government partners to deliver this aircraft ahead of the threat.”

Electra Defense’s launch follows several successful government-directed tests of the EL9 with the in September.

“The EL9’s ability to take off and land from ships and runways as short as 150 feet mitigates the scarcity of available runways in contested environments,” said Retired Gen, Doug Brown, co-chair of Electra’s advisory board, in a statement. “Should a conflict break out in the Indo-Pacific, long-range runway-independent airlift is needed to … counteract the inevitable targeting of runway infrastructure.”

According to CEO Marc Allen, Electra Defense will be based at Electra’s headquarters at Manassas Regional Airport in Virginia.

In January 2023, Electra received an $85 million award from the Air Force to accelerate prototype development, testing and evaluation. The company says the recently completed government-directed tests with the U.S. Air Force marked the latest milestone under that contract.

In addition, Electra is partnering with the on a Small Business Innovation Research contract to advance the research and development of hybrid-electric powertrain, power and propulsion systems.

In June, Electra and ‘s Skunk Works unit entered a memorandum of understanding to accelerate the commercialization of the EL9 and explore global opportunities.

Electra plans to begin flight testing of the EL9 in 2027. The startup previously said it wants to fly for FAA certification credit in 2028 and 2029 and to get the airplane certified and into service in late 2029 or 2030.

So far, the company has secured more than 2,200 provisional orders from over 60 customers worldwide, with its commercial order pipeline valued at $15 billion.

Founded in 2020, Electra announced in April that it had secured $115 million in Series B funding to enter the pre-production and certification phase of the EL9 model. Electra’s strategic investors include Lockheed MartinVentures and .

Allen said in an email that Electra has more than doubled its workforce in 2025 to just under 100 employees and will add dozens more engineering team members in the coming year.

Hearing probes evidence in CEO killing suspect’s arrest

Summary

  • seeks to exclude statements and items seized after Mangione’s 2024 arrest.
  • Officers questioned him before reading , lawyers argue.
  • Gun and notebook from his backpack are key to prosecutors’ case.
  • Hearing offers new details on police encounter ahead of state and federal trials.

NEW YORK (AP) — Minutes after police approached  in a Pennsylvania McDonald’s, he told an officer he didn’t want to talk, according to video and testimony at a court hearing Thursday for the man charged with killing CEO .

Although some video and accounts of police interactions with Mangione emerged earlier in this week’s hearing, Thursday’s proceedings shed new light on the lead-up to and aftermath of his Dec. 9, 2024, arrest in Altoona, Pennsylvania.

Mangione’s lawyers are trying to preclude key evidence from being presented at his state murder trial, including his initial statements to police and a gun and diary they say they found in his backpack.

On the hearing’s fourth day, the 27-year-old Mangione appeared to follow the proceedings intently, at times leaning over the defense table to scrutinize papers or take notes. He briefly looked down as Officer Tyler Frye was asked about a strip-search of Mangione after his arrest. Under the department’s policy, that search wasn’t recorded.

It happened after police were told that someone at the McDonald’s resembled the much-publicized suspect in Thompson’s killing. But Frye and Officer Joseph Detwiler initially approached Mangione with a low-key tone, saying only that someone had said he looked “suspicious.” Asked for his ID, he gave a phony New Jersey driver’s license with a fake name, according to prosecutors.

‘I don’t know what you guys are up to’

Moments later, after frisking Mangione, Detwiler stepped away to communicate with dispatchers about the license, leaving the rookie Frye by Mangione’s table to talk to him. Frye asked him, “What’s going on?” and what had brought him to Altoona.

“I don’t know what you guys are up to,” Mangione answered, and he inquired what was afoot.

After repeating the claim that someone was suspicious of Mangione, Frye asked: “You don’t want to talk to me or anything?”

Mangione indicated that he didn’t. Still, during the roughly 20 minutes before Mangione was told he had the right to remain silent, he answered other questions asked by the officers, and also posed a few of his own.

“Can I ask why there’s so many cops here?” he asked shortly before being informed he was being arrested on a forgery charge related to his false ID. By that point, roughly a dozen officers had converged on the restaurant, and Mangione had been told he was being investigated and had been handcuffed.

What’s at stake?

Mangione has pleaded not guilty to state and federal murder charges. Before any trials get scheduled, his lawyers are trying to prevent the eventual jurors from hearing about his alleged statements to law officers and items — including a gun and a notebook — they allegedly seized from his backpack.

The evidence is key to prosecutors’ case. They have said the 9 mm handgun matches the firearm used in the killing, that writings in the notebook laid out Mangione’s disdain for health insurers and ideas about killing a CEO at an investor conference, and that he gave police the same fake name that the alleged gunman used at a New York hostel days before the shooting.

Hearing coincides with anniversary

Thursday’s proceedings came on the anniversary of the killing, which UnitedHealthcare marked by lowering the flags at its campuses in Minnetonka and Eden Prairie, Minnesota, and encouraging employees to engage in volunteering.

Thompson, 50, was shot from behind as he walked to an investor conference. He became UnitedHealthcare’s CEO in 2021 and had worked within parent UnitedHealth Group Inc. for 20 years.

The hearing, which started Monday and could extend to next week, applies only to the state case. But it is giving the public an extensive preview of some testimony, video, 911 audio and other records relevant to both cases.

After encountering Mangione, Detwiler and Frye tried to play it cool by intimating that they were simply responding to a loitering complaint and chatting about his steak sandwich. Still, they patted Mangione down, pushed his backpack away from him and summoned more officers. About 15 minutes in, an officer warned him that he was being investigated and would be arrested if he repeated what they had determined was a fake name.

After Mangione gave his real one, he was read his rights, handcuffed, frisked again and ultimately arrested on a forgery charge related to his fake ID.

Mangione’s lawyers argue that his statements shouldn’t be allowed as trial evidence because officers started questioning him before reading his rights. They say the contents of his backpack should be excluded because police didn’t get a warrant before searching it.

Manhattan prosecutors haven’t yet detailed their arguments for allowing the disputed evidence. Federal prosecutors have maintained that the backpack search was justified to ensure there was nothing dangerous inside, and that Mangione’s statements to officers were voluntary and made before he was under arrest.

Many criminal cases see disputes over evidence and the complicated legal standards governing police searches and interactions with potential suspects.

ODU gets $15M gift from Brock to launch nutrition institute

SUMMARY:

  • donated $15M to establish a new nutrition and lifestyle medicine institute at
  • The institute will integrate nutrition into medical education, research and clinical care
  • 2026 will focus on recruiting an executive director to lead the institute

Old Dominion University has received a $15 million gift from philanthropist Joan Brock to establish a nutrition and lifestyle medicine institute.

The -based university says the Joan P. Brock Institute for Nutrition Science and Health is a multidisciplinary hub, academic unit and research center that will bring nutrition and lifestyle medicine into medical and health professions education, basic science and translational research, clinical innovation and community health.

“The generosity of Joan Brock continues to enable and better position our faculty and researchers to change the culture of health care with our students through clinical practice and in the communities they serve,” President Brian O. Hemphill said in a statement.

Brock, whose late husband, Macon, co-founded Fortune 500 discount retailer , said her gift was inspired by her personal recovery from a life-threatening illness. She attributes her improved health to a combination of medical treatment, careful nutrition, exercise and changed lifestyle habits.

“I am thrilled to be part of this because I’ve been practicing this for 15 years now,” Brock said in a statement. “I hope the institute makes a difference in people’s lives — just watch how our health care changes as a result and how our bodies change, how our lives are extended and the quality of our lives improves.”

ODU has created a Master of Science in Nutrition program that will enroll its first students in fall 2026, with an option for medical students to pursue a combined M.D. and master’s degree. A metabolic kitchen designed to prepare and analyze meals is expected to be operational in 2027 and will support both teaching and research.

“Once fully operational, the institute will integrate sound nutrition and lifestyle medicine into medical and health professionals’ education, conduct basic science and translational research, administer lifestyle medicine through our patient clinics and serve our community through community-based programs,” said Dr. Alfred Abuhamad, executive vice president for Health Sciences, in a statement.

ODU said the institute arrives as chronic diseases such as heart disease, diabetes and certain cancers account for 90 percent of the nation’s $4.5 trillion annual health care costs. Yet, most medical students receive fewer than 20 hours of nutrition education.

experiences disproportionately high rates of chronic diseases, ranking among the top three areas nationally for colorectal cancer mortality. ODU reports that in Norfolk, the stroke mortality rate exceeds 50 deaths per 100,000.

University leaders say integrating nutrition and lifestyle medicine into training is essential to reversing these trends.

The institute is currently in its planning phase. ODU has formed a steering committee and launched a national search for its inaugural executive director, aiming to fill the position by spring 2026. The new director will determine specific research conducted by the institute in response to community needs.

Abuhamad said Brock’s investment provides both seed funding for establishing and operationalizing the institute, plus an endowment for long-term sustainability. He added that fundraising and the pursuit of extramural grants for research initiatives are ongoing.

The Brocks have donated toward many community projects at ODU, including the academic health center at ODU, the M. Foscue Brock Institute for Community and Global Health, and the expansion of the Barry Art Museum.

ODU’s current enrollment across all five schools within Macon & Joan Brock Virginia Health Sciences is more than 4,400, with approximately 460 medical residents in training.

Trucking company to close Harrisonburg site, laying off 70

Iowa-based will shut down its facility early next year, leaving 70 local workers without jobs as the company winds down operations amid steep revenue losses tied to major shifts at the U.S. Postal Service.

According to a notice filed with Virginia Works, the company will close its site at 888 Auto Motion Way by Feb. 28, 2026, with beginning as soon as Jan. 30. Positions at the Harrisonburg site included drivers, technicians, managers, supervisors and assistants.

A spokesperson confirmed the entire company is closing down nationwide, impacting about 2,000 employees. While the majority of layoffs will take place on Jan. 30, 2026, a handful will remain for a few months to assist as the company closes operations.

According to the company’s website, 10 Roads Express has 36 terminals nationwide and scheduled delivery points in 47 states.

The company announced this week it was winding down its operations “after continued and significant headwinds impacting the industry.”

“Over the past 24 months, the USPS has made fundamental operational changes, including the more prevalent use of brokers and the insourcing of transportation work,” the company said on Monday. “ This has resulted in a 70% loss of revenue for 10 Roads so far, with all indications that this trend will continue. Despite extensive efforts to adapt, 10 Roads has been unable to reduce its platform enough to make continued operations sensible, leading to the difficult decision to cease operations.

The company was formed in 1977, although the group of companies that consolidated into 10 Roads Express traces its roots back to 1946.

A spokesperson said in a statement that the decision was “not made lightly” and that the company is grateful for its entire team’s years of commitment.

10 Roads has notified USPS that it will fully complete all contractual obligations during the transition period.

“We remain very appreciative of our long-standing relationship with the USPS and are committed to supporting a smooth transition,” the spokesperson said

USPS declined to comment.

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Jobless claims fall to 3-year low ahead of Fed decision

Summary

  • drop to 191,000, the lowest since September 2022.
  • Holiday timing may distort data, but remain historically low.
  • Mixed labor and data shape the Fed’s upcoming rate decision.
  • Markets expect a rate cut next week as hiring slows.

 

WASHINGTON (AP) — U.S. applications for fell to their lowest level in more than three years during Thanksgiving week, potentially complicating the ‘s upcoming decision on .

The number of Americans applying for jobless benefits for the week ending Nov. 29 fell to 191,000 from the previous week’s 218,000, the Labor Department reported Thursday. That’s the lowest level since September 24, 2022, when claims came in at 189,000. Analysts surveyed by the data provider FactSet had forecast initial claims of 221,000.

Kathy Bostjancic, chief economist at Nationwide, said that unemployment benefit filings are often distorted by the Thanksgiving holiday, which can cause some people who may have lost jobs to delay filing claims.

Still, the low claims figure also suggests that overall layoffs remain muted, despite the high-profile announcements. Hiring is also sluggish, which makes finding a job for those out of work challenging.

“The is kind of frozen,” Bostjancic said. “Companies are in wait-and-see mode.”

Applications for unemployment aid are viewed as a proxy for layoffs and are close to a real-time indicator of the health of the job market. The job cuts announced recently by large companies such as UPS, General Motors, Amazon and Verizon typically take weeks or months to fully implement and may not be reflected in Thursday’s data.

For now, the U.S. job market appears stuck in a “low-hire, low-fire” state that has kept the unemployment rate historically low.

On Wednesday, private payroll data firm ADP estimated U.S. job losses of 32,000 in November. The surprisingly weak report may be discouraging for people looking for jobs, but it bolstered expectations that the Fed will cut its main interest rate next week.

It’s not clear how much weight this week’s layoff figures will carry with the Fed as the numbers can be volatile and prone to revisions.

Complicating the Fed’s upcoming decision is inflation, which remains above the central bank’s 2% target. The Fed’s preferred measure of inflation will be released in a government report on Friday and will also be factored into its rate call on Wednesday.

Two weeks ago, the government said that hiring picked up a bit in September, when employers added 119,000 new jobs. That mixed report, which also showed employers had shed jobs in August, was delayed due to the government shutdown. The unemployment rate ticked up to 4.4%, its highest level in four years.

November’s comprehensive jobs data has been delayed for release until later this month, after the Fed’s meeting, also due to the government shutdown.

The government also recently reported that retail sales slowed in September after three months of healthy increases.

Consumer confidence has plunged to its second-lowest level in five years, while wholesale inflation eased a bit.

The data suggests that both the economy and inflation are slowing, which has boosted financial markets’ expectations that the Federal Reserve will reduce its key interest rate at its meeting next week. If the Fed does reduce its benchmark rate next week, it would be the third cut of the year as it attempts to support a job market that has been slowing for months.

Thursday’s report from Labor also showed that the four-week average of claims, which evens out some of the week-to-week volatility, fell by 9,500 to 214,750.

The total number of Americans filing for jobless benefits for the previous week ending Nov. 22 dipped by 4,000 to 1.94 million, the government said.

AMC Entertainment CEO remains in charge of world’s largest theater chain after stroke

WASHINGTON (AP) — AMC Entertainment CEO Adam Aron suffered a minor stroke last month but is recovering rapidly and will continue to lead the world’s biggest movie theater chain, the company said Thursday.

Aron, 71, suffered the stroke while on a business trip in London, where he immediately received emergency medical care, the company said.

Besides an initial slurring of speech, AMC says Aron has shown no loss of cognitive brain function and that he expects to make a “speedy and full recovery.”

“Given his mental acuity and physical resilience, Mr. Aron remains in full command at the helm of AMC and continues to perform his duties as chairman, chief executive officer and president,” AMC said in a release. “He has kept in close and constant communication with the board of directors of AMC, with respect both to the prognosis for his recovery as well as the general business affairs of the company.”

AMC has yet to fully recover from the COVID-19 pandemic, when the company was forced to close theaters, furlough staff and logged a 2020 loss of $4.6 billion. Sales have gradually improved each year since, but the company has still not posted a full-year profit.

The rise of streaming video services in the wake of the pandemic has also put the squeeze on movie theaters as people increasingly stay home to watch movies and other shows.

Following the peak of the pandemic, retail investors poured money into AMC stock as part of the meme stock craze, sending its shares from around $11 each to nearly $340 in June of 2021. After a gradual two-year decline, AMC shares collapsed in August of 2023 and are now trading just above $2.

Aron also led AMC’s charge into cryptocurrency in 2021, when the theater chain began accepting a handful of digital coins as payment for theater tickets, popcorn and other concessions. That same year it also issued digital, non-fungible tokens, called NFTs, to ticket buyers and shareholders.

As of the third quarter ending Sept. 30, 2025, AMC said it has about 860 theaters and 9,600 screens worldwide.

New 45,000 SF Industrial Building Available in Amherst County

A brand-new 45,000-square-foot industrial building is now available at 125 East Progress Road in the Amelon Commerce Center, Madison Heights, VA—within the Lynchburg MSA. Designed with flexibility in mind, this state-of-the-art facility can accommodate one to four tenants and includes an additional 20,000 SF expansion opportunity, with the 11.5-acre site already graded to support future growth.

The building features 36-foot clear heights, two loading docks, and drive-in doors, making it ideal for , tech, or other industrial operations. The property’s M-1 Industrial zoning provides broad use potential, ensuring alignment with a variety of business needs.

Infrastructure is fully in place to support modern operations. Utilities include 3-phase power via Appalachian Power, municipal water and sewer (12” water line and 8” sewer line), and robust telecommunications through Comcast Business and Segra/Shentel. Natural gas is available nearby through Columbia Gas, located just a half-mile away on Route 130, with a capacity of 10 mcf per hour.

Location is one of the property’s strongest assets. The site sits less than two miles from three major arteries, offering quick access via a four-lane connector road to US 29, with US 460, I-64, and I-81 also within close reach. This connectivity positions businesses for efficient regional and interstate distribution.

Owned by the Economic Development Authority of Amherst County, this new construction presents a unique opportunity for companies seeking modern space, expansion capabilities, and strategic access to key transportation corridors.

For businesses ready to grow or relocate, this flexible and well-equipped industrial facility delivers the capacity, infrastructure, and location necessary for long-term success.

Click here to learn more and find available sites

Wall Street pulls near its all-time high

Summary

  • moves within 0.6% of its all-time high; Dow jumps 408 points.
  • Mixed lifts expectations for a Fed rate cut next week.
  • Microchip Technology and Marvell lead tech gains with strong outlooks.
  • ease while bitcoin rebounds above $93,000.

NEW YORK (AP) — U.S. stocks rose near their record levels on Wednesday as mixed data on the economy kept alive hopes that a cut to is coming soon.

The S&P 500 gained 0.3% and pulled within 0.6% of its all-time high set in late October. The Industrial Average climbed 408 points, or 0.9%, and the composite added 0.2%.

The biggest jump in the S&P 500 came from Microchip Technology, which leaped 12.2% after saying it expects sales and profit for the final months of the year to come in at the high end of the forecasted ranges it earlier gave. CEO Steve Sanghi said business is doing better than expected, and it’s reducing inventory levels.

Marvell Technology was another winner and rose 7.9% after the supplier of semiconductor products delivered a stronger profit for the latest quarter than analysts expected. CEO Matt Murphy credited demand for its data center products, while also announcing a purchase of Celestial AI to bolster its artificial-intelligence infrastructure business. The deal’s price tag could top $3.25 billion.

Stocks broadly got a lift from easing Treasury yields in the bond market. Yields fell after a report suggested U.S. employers outside of the government may have cut more jobs in November than they added.

While the surprisingly weak report from ADP may be discouraging for people looking for jobs, it also bolstered expectations that the will cut its main interest rate next week. If the Fed does, that would be the third cut of the year in hopes of helping the slowing job market.

Investors love lower interest rates because they boost prices for investments and can charge up the economy.

A separate report Wednesday on activity for U.S. services business was more encouraging. It said growth was stronger last month than expected for businesses in the retail, finance, insurance and other industries.

The report from the Institute for Supply Management’s survey also said that prices were increasing at their slowest rate since April. That’s important because the main argument against cutting interest rates is that it could worsen .

The yield on the 10-year Treasury fell to 4.06% from 4.09% late Tuesday.

Lower interest rates can boost prices for all kinds of investments, and bitcoin climbed above $93,000 following its scary downward run in recent weeks. It briefly plunged below $81,000 last month.

On Wall Street, American Eagle Outfitters rallied 15.1% after the retailer reported a better profit than expected. Its CEO, Jay Schottenstein, said it also saw a strong start to the holiday shopping season with an acceleration in demand across its brands during the Thanksgiving weekend.

Capricor Therapeutics surged 371.1% after the biotech company reported encouraging results for its potential therapy for people with Duchenne muscular dystrophy.

On the losing end of Wall Street were relatively few companies, including one out of every three stocks in the S&P 500 index. But among them were some of the market’s most influential stocks, which kept indexes in check.

Microsoft fell 2.5% and was the heaviest weight on the S&P 500.

Macy’s lost 1.1% after flipping between losses and gains through the day. It reported a profit for the latest quarter that was much better than the loss that analysts were expecting, but its stock had already come into the day with a gain for the year so far that more than doubled the S&P 500’s.

All told, the S&P 500 rose 20.35 points to 6,849.72. The Dow Jones Industrial Average added 408.44 to 47,882.90, and the Nasdaq composite gained 40.42 to 23,454.09.

In stock markets abroad, indexes were close to flat in Europe following a mixed finish in Asia.

Japan’s Nikkei 225 jumped 1.1% on gains for technology stocks like Tokyo Electron. SoftBank Group Corp. leaped 6.4% following reports that its founder, Masayoshi Son, regretted having to sell shares in computer chipmaker Nvidia to help pay for other investments.

Chinese indexes sank following the release of data showing weaker factory activity. Stocks fell 1.3% in Hong Kong and 0.5% in Shanghai.

HII investing $28M for Hampton manufacturing facility

Newport News-based Fortune 500 contractor is investing $28 million to create an carrier and submarine plant in , the city’s mayor said Wednesday.

The 150,000-square-foot building off Commander Shepard Boulevard has historically been used by as an assembly building, but it is now being gradually converted into a light manufacturing advanced technology facility for HII’s division.

Hampton Mayor Jimmy Gray made the announcement Wednesday during his state of the city address held at the Hampton Convention Center.

The facility will house 3D printing technology and about 300 employees, most of whom will be existing workers transferred to the new jobs. Gray said the site’s transformation is “in direct response to the demand for the company to accelerate production of aircraft carriers and submarines.”

In a video shown to attendees of Gray’s address, NNS Vice President of Human Resources Xavier Beale said the facility will strengthen the company’s relationship with Hampton and house “some of the most technologically advanced additive manufacturing machines known to mankind.”

At the site, NNS will print an array of alloys ranging from pounds to tons.

“Most of our work is done in Newport News, but what many may not know is that we have many warehouses located in the city of Hampton,” Beale said. “About 50 of our suppliers operate within the city, and I’m excited to say that more than 5,000 of our shipbuilders call Hampton Home.”

A subsidiary of HII, NNS is the state’s largest industrial employer, employing about 26,000 people.

Macy’s reports surprise Q3 profit, lifts annual outlook

Summary

  • Macy’s reports an unexpected third-quarter profit.
  • Comparable-store sales rise 3.2%, the best in more than three years.
  • Retailer raises its financial outlook for the year.
  • Overhaul of the 167-year-old chain shows signs of resonating with shoppers.

NEW YORK (AP) — Macy’s posted a surprise third-quarter profit and its strongest in more than three years as an extensive overhaul of the 167-year-old New York department store begins to resonate with shoppers.

Macy’s raised its for the year, but its outlook for the crucial fourth quarter was more reserved, reflecting the mood of many customers who have grown more selective in what they buy during the holiday season.

Trading was volatile Wednesday as investors weighed what appeared to be growing momentum for under new CEO Tony Spring, and anxiety over the that threatens to curb holiday spending.

Comparable sales, a good barometer of a retailer’s health, have been an ominous sign at Macy’s for several years now, serving each quarter as a reminder that the storied department store chain had a long way to go.

On Wednesday, however, Macy’s posted a solid 3.2% increase for the quarter ended Nov. 1, following a 1.9% increase during the second quarter. Those sales includes licensed businesses like cosmetics.

For Macy’s, which also owns higher end stores like Bloomingdales and Bluemercury, the strong performance is notable because all retailers are navigating a challenging environment with consumers pulling back as prices rise in a U.S.-initiated trade war.

Yet consumer spending is uneven with higher income households continuing to spend more freely, while lower income families pull back in what is often referred to a “K-shaped economy.”

“The K economy is is real,” Spring told The Associated Press during a phone interview on Wednesday. “We’re fortunate. Bloomingdales and Bluemercury are solidly in the upper part of the K and about half of the Macy’s customers are in the upper part of the K. But we do also appeal to an aspirational customer and one that is choiceful. And so our job is to make sure that we get our fair share of the business. ”

Spring said Macy’s had to be “realistic” and “sensible” with fourth quarter guidance.

The company has leaned into promotions to lure shoppers who are tight with their budgets, he said.

Under Spring, who took over the top job in early 2024, Macy’s has closed unprofitable stores while investing heavily in modernizing locations. The company has beefed up customer service in the fitting areas as well as the shoe department. It’s also been trying to differentiate its luxury business from its rivals with exclusive merchandise.

Roughly 50% of customers at the Macy’s have a household income of over $100,000 and at Bloomingdale’s and Bluemercury, there’s a larger percentage with household incomes over $150,000.

As Macy’s navigates what has become a volatile global trading environment due to U.S. tariffs, it’s trying to take a more surgical approach when it comes to price increases. The company is working with its suppliers to absorb some of the higher costs.

The impact of tariffs has been less than what Macy’s had anticipated, Spring said, but they remain a factor.

Macy’s reported net income of $11 million, or 4 cents per share, for the quarter. Adjusted earnings per share was 9 cents, catching industry analysts who had expected a loss of 13 cents off guard.

The company last year earned $28 million or 10 cents per share.

Net sales fell slightly to $4.71 billion, from $4.73 billion, reflecting the of poorly performing stores. But that still outperformed projections of $4.55 billion from analysts.

The stores it’s overhauled, 125 of them, booked comparable sales growth of 2.7% growth, outperforming the pace when all stores are included.

“While it would be an exaggeration to say that Macy’s is a retailer at the very top of its game, there is no doubt that it is now becoming a more proficient player on the retail field,” said Neil Saunders, managing director of GlobalData. “The sloppy and slapdash execution that once plagued the chain has largely disappeared.”

Macy’s now expects annual earnings per share of between $2 and $2.20, well above its previous guidance of $1.70 to $2.05 per share. It also projected annual 2025 sales in the range of $21.47 billion to $21.62 billion, up from its previous guidance of $21.15 billion to $21.45 billion.

Wall Street had been projecting earnings of $2 per share on sales of $21.3 billion, according to FactSet.

Shares rose 2% Wednesday.