Macy's(US:M) Zhi Tong Cai Jing·2025-09-03 13:08Core 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].