Core Insights - Macy's shares surged 18% as the department store chain indicated that its turnaround plan is beginning to yield positive results after years of poor sales performance [1] - The company reported quarterly sales growth for the first time in three years, excluding newly opened or closed locations [1] Turnaround Strategy - CEO Tony Spring launched a three-year plan in February, aiming to close 150 underperforming stores and reinvest in high-potential locations with improved product mix and displays [2] - The plan includes hiring more staff for fitting rooms, decluttering shoe departments, and introducing new brands such as DKNY and Khloe Kardashian's Good American [2] Financial Performance - Macy's expects annual adjusted profit per share to be between $1.70 and $2.05, an increase from previous expectations of $1.60 to $2.00 [3] - The annual net sales forecast was raised to $21.15 billion to $21.45 billion, up from $21 billion to $21.4 billion [3] - The company reported net sales of $4.81 billion, exceeding estimates of $4.76 billion, and adjusted earnings per share of 41 cents, beating projections of 18 cents [9] Sales Growth and Comparables - Comparable sales growth for Macy's was reported at 0.8%, marking its best performance in 12 quarters [8][11] - A group of 125 remodeled stores under the turnaround plan achieved comparable sales growth of 1.1% [9] - Bloomingdale's and Bluemercury brands showed stronger performance, with comparable sales growth of 3.6% and 1.2%, respectively [8] Tariff Impact - The estimated impact of tariffs on full-year gross margins was increased to 40 to 60 basis points, up from previous projections of 20 to 40 basis points [5] - The company is implementing "surgical" price increases to mitigate tariff costs, although unit sales have shown signs of softness due to price increases [5][6]

Macy's shares jumped nearly 20% Wednesday after the biggest U.S. department store chain posted better-than-expected results and boosted its guidance on solid demand at its "Reimagine" namesake locations, as well as Bloomingdale's and Bluemercury stores. https://t.co/04yHf0GpNk ...

Core Insights - Macy's, Inc. reported second-quarter fiscal 2025 results with both top and bottom lines exceeding Zacks Consensus Estimates, although both metrics declined compared to the previous year [1][10] - Comparable sales increased, marking the strongest growth in 12 quarters, prompting the company to raise its fiscal 2025 outlook [1][10] Financial Performance - Adjusted earnings were 41 cents per share, surpassing the consensus estimate of 19 cents, but down 22.6% from 53 cents in the prior year [3] - Net sales reached $4,812 million, exceeding the consensus estimate of $4,718 million, but down 2.5% year over year [4] - Comparable sales increased by 0.8% on an owned basis and 1.9% on an owned-plus-licensed-plus-marketplace basis [4] Brand Performance - Macy's brand comps increased by 0.4% on an owned basis and 1.2% on an owned-plus-licensed-plus-marketplace basis [6] - Bloomingdale's brand comps rose by 3.6% on an owned basis and 5.7% on an owned-plus-licensed-plus-marketplace basis, marking its fourth consecutive quarter of growth [6] - Bluemercury brand comps increased by 1.2% on an owned basis, achieving its 18th consecutive quarter of growth [6] Margins and Expenses - Gross margin was 39.7%, meeting estimates but down 80 basis points year over year due to markdowns and prior tariff impacts [7] - Selling, general and administrative (SG&A) expenses were $1.94 billion, down 1.5% year over year, but SG&A as a percentage of total revenues increased to 38.9% [8][9] Guidance and Outlook - The company raised its fiscal 2025 net sales outlook to between $21.15 billion and $21.45 billion, up from the previous range of $21 billion to $21.4 billion [10][16] - Comparable owned-plus-licensed-plus-marketplace sales are projected to decline between 1.5% to 0.5% year over year [16] - Adjusted earnings per share guidance was increased to a range of $1.70 to $2.05, compared to the prior range of $1.60 to $2.00 [17] Financial Snapshot - As of the end of the second quarter, the company had cash and cash equivalents of $829 million, long-term debt of $2.43 billion, and shareholders' equity of $4.45 billion [12] - Merchandise inventories declined by 0.8% year over year [12] - The company repurchased 4 million shares for $50 million during the quarter, with $1.2 billion remaining under its $2 billion share repurchase authorization [13]

Group 1 - Macy's, Inc. is a long-standing retail company known for its iconic stores, particularly the one located on Herald Square [1] - The company has been a staple for American shoppers for generations, indicating its strong brand presence and customer loyalty [1] Group 2 - The analyst expresses a focus on undervalued and disliked companies with strong fundamentals and good cash flows, highlighting a strategy of long-term value investing [1] - There is a particular interest in sectors such as Oil & Gas and consumer goods, suggesting a targeted investment approach [1] - The analyst mentions specific companies like Energy Transfer as examples of those that have been overlooked but possess potential for substantial returns [1]

A Macy's store in Los Angeles, California, US, on Tuesday, Aug. 15, 2023.. Photographer: Eric Thayer/Bloomberg© 2023 Bloomberg Finance LPThis morning Macy’s beat quarterly earnings expectations and raised its guidance, sending its shares up dramatically in early trading.Now, some 18 months into the department store’s “Bold New Chapter,” it’s worth asking the question: Is this clear evidence that the new strategy is starting to work?Based upon what we learned today, my more charitable answer is somewhere bet ...

Core Viewpoint - Macy's is focusing on high-income households to drive its recovery and has reported better-than-expected second-quarter net sales of $4.8 billion, surpassing Wall Street estimates [1][2]. Group 1: Customer Demographics - More than 50% of Macy's customers come from households earning over $100,000, indicating a shift towards higher-income consumers [3]. - The company has seen a healthier performance in higher income tiers, while exposure to lower income levels has decreased significantly [3]. Group 2: Product Offering and Customer Experience - Macy's is introducing new brands such as Abercrombie Kids, Sam Edelman, Hugo Boss, and Good American to attract customers [4]. - The sales growth is occurring across all its brands, including Bloomingdale's and Bluemercury, as the company aims to improve customer experience by reimagining 125 Macy's locations and enhancing product selection [9]. Group 3: Pricing Strategy and Market Position - The company has begun raising prices on certain items in response to tariffs, although it is too early to assess consumer reactions to these price hikes [10]. - Macy's strategy includes offering a wide range of price points, from off-price to luxury, to avoid reliance on a single market segment [12]. Group 4: Historical Context and Future Outlook - In recent years, Macy's has faced challenges such as slumping sales and store closures, but it has declined a buyout offer, opting instead to focus on its turnaround strategy [11].

Core Insights - Macy's Inc. experienced its strongest comparable sales growth in 12 quarters during the second quarter, with positive performance across its three department store brands: Macy's, Bloomingdale's, and Bluemercury [1][4]. Group 1: Sales Performance - The Macy's nameplate recorded a year-over-year growth in comparable sales of 1.2% across all stores and 1.5% at go-forward stores, which are those not planned for closure [4]. - Bloomingdale's achieved a 5.7% increase in comparable sales, marking its fourth consecutive quarter of growth, while Bluemercury reported a 1.2% increase, its 18th consecutive quarter of gains [6]. Group 2: Strategic Initiatives - The company's growth is attributed to "substantive enterprise-wide improvements" under its "A Bold New Chapter" strategy, which aims to modernize operations and enhance customer experience [2][3]. - The strategy includes closing underperforming locations and investing in areas with growth potential, leading to a more focused and profitable store base [5]. Group 3: Future Outlook - Macy's Inc. raised its 2025 guidance for comparable sales to a range of down 1.5% to down 0.5%, an improvement from the previous guidance of down 2% to down 0.5% [7]. - The company acknowledges the resilience of its customer base but remains cautious about potential impacts from tariffs on demand, suggesting a more selective consumer behavior in future guidance [8].

Welcome back. Macy's on pace for its best day since November of 2021 after raising its outlook. Gabrielle Fon Rouge has more on the company's turnaround efforts.Big day, Gabrielle. Yeah, huge day. Shares of Macy's are surging this morning after the company beat earnings expectations and raised its guidance.Comparable sales and revenue both came in better than expected while earnings per share were more than double expectations. Now, estimates were a bit low coming into the print after Macy's cut its guidanc ...

About this content About Emily Jarvie Emily began her career as a political journalist for Australian Community Media in Hobart, Tasmania. After she relocated to Toronto, Canada, she reported on business, legal, and scientific developments in the emerging psychedelics sector before joining Proactive in 2022. She brings a strong journalism background with her work featured in newspapers, magazines, and digital publications across Australia, Europe, and North America, including The Examiner, The Advocate, ...

Core Insights - Macy's, Inc. has experienced a decline of 13% in its stock value over the past year, but reported strong quarterly results that led to a stock increase of over 10%, reaching its highest level in months [1] Group 1 - The company has been focusing on turnaround strategies that are beginning to show positive results [1] - The recent quarterly performance indicates a potential shift in investor sentiment towards Macy's, suggesting a recovery phase [1]