— Macy’s shares surged about 10% in premarket trading after the department store topped fiscal Q2 expectations and lifted its full‑year outlook, citing better trends at revamped stores.
Key Takeaways
- Adjusted EPS: $0.41 vs $0.18 expected (LSEG consensus)
- Revenue: $4.81 billion vs $4.76 billion expected
- Stock up roughly 10% premarket following results
- FY 2025 guidance raised: adjusted EPS $1.70–$2.05 (from $1.60–$2.00); revenue $21.15–$21.45B (from $21.00–$21.40B)
- Best comparable sales growth in 12 quarters; 125 focus stores up 1.1% on an owned basis
- Bloomingdale’s comps +3.6% (owned); Bluemercury comps +1.2% (owned)
- Credit card net revenues rose $28M to $153M
- Net income fell to $87M ($0.31) from $150M ($0.53) a year earlier
Verified Facts
For the quarter ended August 2, Macy’s delivered adjusted earnings per share of $0.41 on sales of $4.81 billion, outpacing Wall Street forecasts compiled by LSEG. Despite the beat, total net income declined year over year to $87 million from $150 million, reflecting ongoing margin and demand normalization pressures.
The company raised full‑year guidance after cutting it last quarter. Management now expects adjusted EPS of $1.70 to $2.05 and revenue between $21.15 billion and $21.45 billion. The outlook incorporates anticipated tariff effects and assumes continued stabilization in customer demand.
Macy’s highlighted improving performance in a cohort of 125 higher‑priority locations receiving added staffing and renovations, which outpaced the broader chain with 1.1% comparable sales growth on an owned basis. Management also pointed to category strength in denim, women’s contemporary apparel, and watches.
Across banners, Bloomingdale’s posted 3.6% comparable sales growth (owned), while Bluemercury rose 1.2%, continuing to outperform the Macy’s namesake brand. Credit card net revenues increased by $28 million to $153 million, providing an ancillary boost to results.
| Metric (Q2 FY2025) | Reported | Consensus |
|---|---|---|
| Adjusted EPS | $0.41 | $0.18 |
| Revenue | $4.81B | $4.76B |
| Net Income | $87M ($0.31) | — |
| FY 2025 Guidance | New | Prior |
|---|---|---|
| Adjusted EPS | $1.70–$2.05 | $1.60–$2.00 |
| Revenue | $21.15B–$21.45B | $21.00B–$21.40B |
Context & Impact
Management said store refreshes and tighter assortments are improving conversion and full‑price sell‑through, helping comps after several choppy quarters. The company had previously cited uncertainty tied to U.S. tariffs and implemented selective price increases; those headwinds are now embedded in the guidance.
Bloomingdale’s and Bluemercury continue to be relative bright spots, underscoring the portfolio’s diversification across luxury department store and specialty beauty. Sustained momentum at those banners could help offset slower traffic at legacy Macy’s locations.
Looking ahead to the fall season, Macy’s emphasized a healthier inventory position and focus on trend‑right categories. Investors will watch whether merchandise margin gains and credit income can balance tariff costs and promotional intensity.
By the Numbers: Banner and Store Initiatives
- Priority 125 stores: +1.1% comparable sales (owned), outpacing the broader Macy’s brand
- Bloomingdale’s: +3.6% comps (owned)
- Bluemercury: +1.2% comps (owned)
- Credit card net revenues: $153M (+$28M YoY)
Official Statements
“Tariffs are real,” and Macy’s has incorporated their impact into its outlook while pursuing tailwinds from store upgrades and sharper assortments.
Tony Spring, CEO, in a CNBC interview
Unconfirmed
- Macy’s did not disclose the precise company‑wide comparable sales rate; only that it was the best in 12 quarters.
- The magnitude of tariff‑related margin headwinds was not quantified.
- Impact of earlier price increases on unit demand was not detailed.
Bottom Line
A clean beat on earnings and revenue, improved comps at refreshed stores, and raised full‑year guidance reignited investor confidence. The next test is sustaining momentum into the fall and holiday period while managing tariff costs and promotions.