Macy’s Inc. (M) announced a significant turnaround in its second-quarter earnings, marking a positive shift in the company’s performance. Comparable-store sales increased by 0.8%, surpassing analyst predictions of a 0.5% decline. This positive result represents the first such growth since the first quarter of 2022.
The improved financial results led to a substantial increase in Macy’s stock price. Shares rose sharply in premarket trading, reaching a seven-month high. This surge reflects investor confidence in the company’s revitalization efforts.
Tony Springs, Macy’s Chief Executive Officer, attributed the company’s success to its multi-brand, multi-category, and omnichannel approach. He emphasized the company’s focus on achieving sustainable, long-term profitable growth. This strategy appears to be yielding positive results.
The positive performance was not limited to one area of the business. Macy’s “Reimagine” network of 125 stores saw a 1.1% increase in same-store sales. Similarly, Bluemercury makeup stores experienced a 1.2% rise, while Bloomingdale’s saw a more substantial 3.6% jump in same-store sales.
Despite the positive results, Macy’s overall sales were slightly lower than the previous year’s second quarter. Total sales decreased to $4.81 billion from $4.94 billion. However, this figure still exceeded analyst expectations of $4.7 billion. The company attributed the lower sales figures to gross margin reductions implemented to manage inventory levels and address pricing challenges related to previous tariff rates.
The company also experienced a decrease in profitability compared to the same period last year. Second-quarter profit fell to $87 million, or 31 cents per share, down from $150 million, or 53 cents per share, in the year-ago period. However, adjusted earnings per share, excluding nonrecurring items, beat analyst forecasts.
Despite the reduction in overall profit, Macy’s adjusted its full-year earnings outlook upward. The company now projects adjusted earnings per share between $1.70 and $2.05, an increase from its previous estimate of $1.60 to $2.00. This revised forecast suggests continued optimism within the company.
Macy’s also implemented cost-cutting measures, resulting in a $29 million reduction in selling, general, and administrative expenses. These savings partially offset investments made in the “Reimagine” stores and Bloomingdale’s. The company’s efforts to improve efficiency seem to be having a positive effect.
Before the positive news, Macy’s stock had underperformed the market significantly in 2025. However, the recent positive results are expected to change the trajectory of the company’s stock price.
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