Macy's, Inc. turned profitable in the holiday quarter with earnings that easily topped analysts' expectations as its turnaround strategy started to show some signs of taking hold.

But the quarterly results were mixed as sales fell and missed expectations. The department store giant also echoed other retailers, including Walmart, Target and Abercrombie & Fitch, with a cautious outlook for 2025 amid tariff and consumer uncertainty.

READ MORE: Consumer confidence down sharply in February

Net income totaled $342 million, or $1.21 a share, for the quarter ended Feb. 1, compared with a loss of $128 million, or a loss of $0.47 a share, in the year-ago period. Adjusted earnings totaled $507 million, or $1.80 per share, ahead of analysts estimates of $1.54 a share.

Operating income rose to $500 million, from a loss of $149 million in the year-ago period.