Macy’s posted fiscal second-quarter earnings Wednesday that easily topped Wall Street’s expectations, as it said revamped stores helped sales trends.

The department store operator also raised its full-year earnings and sales guidance. It now expects adjusted earnings of between $1.70 and $2.05 per share, compared with $1.60 to $2 per share, and revenue between $21.15 billion and $21.45 billion, compared with $21 billion to $21.4 billion.

The stock closed 20% higher on Wednesday.

Macy’s had slashed its full-year guidance last quarter and reported uncertainty in sales due to President Donald Trump’s tariffs.

“We’re just well positioned right now for the environment we’re in to take share, to deliver for our customers and to provide a better experience,” CEO Tony Spring told CNBC in an interview.

Last quarter, the company said it was hiking prices of certain products to offset tariff costs. Spring said Wednesday that the company now has tariff impacts included in its outlook and remains cautiously optimistic about the future.

“Tariffs are real. It’s a component of the business, but we have tail winds that we are trying to mitigate against those headwinds,” Spring said. “That’s a better customer experience, that’s a newer assortment, that’s less redundancy in our assortment, that’s now a business that’s growing across all three nameplates in our portfolio and a healthy inventory position going into the fall season.”

Spring added that the consumer remains resilient and continues to spend on new items and fashion.

Macy’s said it saw its best comparable sales growth in 12 quarters, and Spring said the retailer’s strategy is leaning into business segments that are working to keep its momentum going, including growth in denim, women’s contemporary apparel and watches.

Here’s how the company performed during its fiscal second quarter, compared with what Wall Street was anticipating, based on a survey of analysts by LSEG:

• Earnings per share: 41 cents adjusted vs. 18 cents expected
• Revenue: $4.81 billion vs. $4.76 billion expected

In the three-month period that ended Aug. 2, the company’s net income was $87 million, or 31 cents per share, compared with $150 million, or 53 cents per share, the year prior. Net sales dropped from $4.94 billion in the year-ago period to $4.81 billion. Adjusted earnings per share were 41 cents.

Macy’s said the group of 125 stores that the company has chosen to focus on with higher staffing and renovations, outperformed the broader Macy’s brand, seeing comparable sales growth of 1.1% on an owned basis.

The department store also owns Bloomingdale’s, which reported comparable sales growth of 3.6% on an owned basis, and Bluemercury, which saw comparable sales rise 1.2%. Those two brands have consistently performed better than the Macy’s namesake stores.

The company also reported a $28 million increase in credit card net revenue to $153 million.

“When you think about the strength of a department store or a marketplace, it’s when multiple categories are working,” Spring said Wednesday.

CFO Tom Edwards said on a call with analysts on Wednesday that Macy’s is exploring more price hikes on certain products because of tariffs.

“We’re adjusting prices, but as appropriate, not broad-based and really assessing it with our partners in an effort to remain competitive,” Edwards said. “I believe that we are really well positioned to navigate through this time given our business model.”