Macy's(US:M)2025-09-03 10:59Financial Performance - Macy's, Inc. reported net sales of $4.8 billion for Q2 2025, a decrease of 2.5% compared to Q2 2024, with comparable sales up 0.8% on an owned basis and up 1.9% on an O+L+M basis[4] - The company achieved GAAP diluted EPS of $0.31 and Adjusted diluted EPS of $0.41, both exceeding guidance[4] - Net income for the 13 weeks ended August 2, 2025, was $87 million, a decline of 42.0% compared to $150 million in the prior year[26] - Basic earnings per share for the 13 weeks ended August 2, 2025, were $0.32, down from $0.54 in the same period last year[26] - For the 26 weeks ended August 2, 2025, Macy's, Inc. reported a net income of $124 million, with diluted earnings per share of $0.44, down from $212 million and $0.75 per share for the same period in 2024[53] Sales and Revenue - Total revenue for the 26 weeks ended August 2, 2025, was $9,791 million, down 3.0% from $10,096 million in 2024[29] - Comparable sales on an owned-plus-licensed-plus-marketplace basis increased by 1.9% for the 13 weeks ended August 2, 2025, while comparable sales on an owned basis increased by 0.8%[47] - The company expects comparable owned-plus-licensed-plus-marketplace sales to decline approximately 1.5% to flat versus 2024[17] - The impact of departments licensed to third parties and marketplace sales contributed 1.1% to comparable sales for the 13 weeks ended August 2, 2025[47] Expenses and Margins - Adjusted EBITDA was $393 million, or 7.9% of total revenue, down from $438 million, or 8.6% of total revenue in Q2 2024[9] - The company's Adjusted EBITDA for the 13 weeks ended August 2, 2025, was $393 million, compared to $438 million for the same period in 2024[51] - Gross margin for the 26 weeks ended August 2, 2025, was $3,716 million, representing 39.5% of total revenue, compared to $3,899 million or 39.9% in 2024[29] - The company experienced a decrease in comparable sales on an owned basis of (0.6%) for the 26 weeks ended August 2, 2025[49] Shareholder Returns - The company returned $100 million to shareholders in Q2 2025, including $50 million in dividends and $50 million in share repurchases[4] - The company paid dividends totaling $100 million during the 26 weeks ended August 2, 2025, compared to $96 million in the same period last year[34] Debt and Cash Position - As of the end of Q2 2025, total debt was $2.6 billion, with a net reduction of long-term debt of approximately $340 million[10] - Cash and cash equivalents at the end of the period were $829 million, a decrease from $1,306 million at the beginning of the period[31] - Total assets as of August 2, 2025, were $15,551 million, down from $16,402 million as of February 1, 2025[31] - The company reported a net cash provided by operating activities of $255 million for the 26 weeks ended August 2, 2025, compared to $137 million in the prior year[34] - The company incurred $179 million in capital expenditures for property and equipment during the 26 weeks ended August 2, 2025[34] - Restricted cash amounted to $3 million as of August 2, 2025, included with cash and cash equivalents[6] Strategic Initiatives - The company plans to continue reinvesting savings from its Bold New Chapter strategy to support long-term sales growth[16] - Macy's, Inc. revised its annual guidance, projecting net sales between $21.15 billion and $21.45 billion for 2025, an increase from previous guidance[16] - The company reported a loss on extinguishment of debt of $13 million for the 13 weeks ended August 2, 2025[51] Taxation - The effective income tax rates for the 13 weeks ended August 2, 2025, and August 3, 2024, were 24.3% and 23.1%, respectively, influenced by state and local taxes[3]