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]

Company Performance & Strategy - Macy's CEO states the company caters to both high-end and lower-end consumers, potentially a key strength [1][9] - The company's turnaround, led by CEO since February 2024, is showing signs of progress, boosting investor confidence [2] - Macy's is revamping stores to improve the shopping experience, focusing on aesthetics and experiential elements [3] - Comp sales growth surprised positively at 1.9% excluding closed businesses, indicating a slowing decline [4] Challenges & Mitigation - Tariffs are impacting margins by an estimated 40 to 60 basis points [6] - Macy's is negotiating with suppliers and leveraging private label brands to mitigate tariff costs [6][7] - The company reduced expenses and inventory, improving product mix, particularly in women's apparel [7] Consumer Behavior - Consumers are becoming more selective and "surgical" in their spending choices [8] - Macy's aims to offer products for a wide range of consumers, addressing the evolving identity of department stores [9] Market Reaction - Macy's shares experienced a 20% increase, suggesting positive investor sentiment [10]

Market Performance - The three major U.S. stock indices showed mixed performance on September 3, with the Dow Jones down 0.01%, the Nasdaq up 0.75%, and the S&P 500 up 0.43% [3] Company News - Google shares rose over 7% after a U.S. judge ruled that Google does not need to sell its Chrome browser and is not required to divest its Android operating system [9] - Apple shares increased by more than 3% as Bank of America raised its price target for Apple from $250 to $260 [4] - Macy's stock surged over 14% following a strong second-quarter earnings report and an upward revision of its annual guidance [4] - Nvidia clarified rumors regarding its H100 and H200 GPUs, stating that supply is sufficient to meet demand [8] - Tesla released its "Master Plan Part IV," focusing on integrating artificial intelligence into the physical world, moving beyond just electric vehicles [8] - Apple announced its annual fall product launch event scheduled for September 9, where the iPhone 17 series is expected to be unveiled [8]

Market Performance - The three major U.S. stock indices opened mixed, with the Nasdaq up by 0.85%, the S&P 500 up by 0.41%, and the Dow Jones down by 0.08% [1][2] - Notable stock movements include Google (Alphabet) rising over 7%, Macy's increasing over 14%, and Apple gaining more than 3% [1] Commodity Prices - Spot silver has surpassed $41 per ounce, increasing by over 0.5%, marking a new high since 2011 [3] - Spot gold has reached above $3550 per ounce for the first time, achieving a year-to-date increase of over 35% [4] Pre-Market Activity - Apple saw a nearly 4% increase in pre-market trading [6] - Macy's experienced a pre-market rise of over 10% after the company raised its annual guidance [6] - Alphabet (Google) was up over 6% in pre-market trading following a ruling in its online search monopoly case, which stated that it does not need to divest Chrome and Android systems [6]

Financial Performance - Macy's lifted its full-year outlook [1] - Quarterly same-store sales flipped to growth for the first time since 2022 [1]

Group 1 - Google shares rose over 7% following a favorable ruling in the online search monopoly case, allowing it to retain Chrome and Android systems [6] - Macy's stock increased by more than 14% after the company raised its annual guidance [6] - Apple shares gained over 3% in the market [1] Group 2 - The Dow Jones Industrial Average opened at 45,259.28, down 36.53 points or 0.08% [2] - The Nasdaq Composite Index opened at 21,461.19, up 181.56 points or 0.85% [2] - The S&P 500 Index opened at 6,441.60, up 26.06 points or 0.41% [2] Group 3 - Spot silver surpassed $41 per ounce, increasing over 0.5%, marking a new high since 2011 [3] - Spot gold first rose above $3,550 per ounce, achieving a historical high with a year-to-date increase of over 35% [4]

Core Viewpoint - Macy's reported better-than-expected Q2 financial performance, achieving the highest same-store sales growth in 12 quarters and raising its annual guidance [1][3][5]. Financial Performance - Q2 revenue decreased by 2.8% year-over-year to $4.81 billion, exceeding the expected $4.76 billion [1]. - Adjusted EPS was $0.41, significantly higher than the expected $0.18 [1]. - Net profit for the quarter was $87 million, down from $150 million in the same period last year [1]. Same-Store Sales - Same-store sales turned positive with a growth rate of 1.9%, the highest increase in 12 quarters, compared to an expected decline of 0.5% [1][3]. - Bloomingdale's reported a same-store sales increase of 3.6%, while Bluemercury saw a 1.2% increase [3][4]. Annual Guidance - The company raised its annual revenue and earnings guidance, now expecting net sales to reach $21.45 billion, slightly above the previous estimate of $21 billion [3]. - Adjusted diluted EPS guidance was increased to a range of $1.70 to $2.05, up from the previous range of $1.60 to $2.00 [3]. Strategic Initiatives - The company plans to close approximately 150 underperforming stores by 2026 and invest in stronger departments [5]. - CEO Tony Spring has focused on enhancing the performance of Macy's stores identified with the highest growth potential [5]. Market Outlook - Despite a strong Q2 performance, the company remains cautious about consumer spending in the second half of the year, with a projected sales decline of 0.5% to 1.5% [6]. - The company has incorporated the impact of tariffs into its forecasts and is optimistic about future performance [6]. Consumer Behavior - Consumers continue to show resilience, particularly in new and fashionable products [7]. - The company is focusing on expanding business areas that maintain growth momentum, such as denim, women's modern apparel, and watches [7].