• CNBC's Jim Cramer on Friday reviewed Macy's most recent quarter, saying he's pleased with the retail giant's progress so far.
• "It's early days for the Macy's turnaround. ... It's going to unfold gradually over the next three years," he said. "I'm sure there'll be highs and lows along the way. But this week, we heard about a lot of progress in the initial few months of that effort, and I got to tell you, I'm feeling really good about Macy's."

CNBC's Jim Cramer on Friday reviewed Macy's most recent quarter, saying he's pleased with the retail giant's preliminary progress in putting its turnaround strategy to work.

"It's early days for the Macy's turnaround. ... It's going to unfold gradually over the next three years," he said. "I'm sure there'll be highs and lows along the way. But this week, we heard about a lot of progress in the initial few months of that effort, and I got to tell you, I'm feeling really good about Macy's."

Macy's quarterly earnings beat Wall Street's expectations, while revenue came in roughly in line with estimates. The company, which owns luxury retailer Bloomingdales and cosmetics brand Bluemercury as well as the namesake chain, managed to raise its full-year earnings expectations. The Tuesday report bumped Macy's shares up 5% by the end of the session.

It's only the iconic company's first full quarter with CEO Tony Spring at the helm, Cramer noted. Spring, who formerly led the Bloomingdale's division, has "now unleashed his luxury expertise on the entire company." To Cramer, it's smart to make the Macy's brand more upscale as retailers that sell inexpensive apparel face stiff competition from companies like China-owned Temu or Shein.

Cramer praised Macy's plan to close many underperforming namesake stores while investing in and updating the locations that are doing better. The company also is trying to scale Bloomingdale's and Bluemercury brands, which performed well over the past quarter.

Although he said he never likes to recommend a company based on the promise of a takeover bid, Cramer pointed out that activist investor Arkhouse is still eyeing Macy's even after the two settled a proxy fight in April. He said it "doesn't hurt" to have a potential buyer on deck.

"I see multiple ways to win with Macy's," he said. "Either Tony Spring keeps pulling off his ambitious turnaround — and I believe he can do it— or someone else comes in and buys the darned thing."

Macy's did not respond immediately to a request for comment.

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