Core Insights - Macy's Inc reported better-than-expected second-quarter earnings and raised its fiscal outlook, leading to an increase in share price [1][7] Financial Performance - Net sales for the quarter reached $4.81 billion, a decrease of 2.5% year-over-year, surpassing the consensus estimate of $4.76 billion [2] - The company raised its 2025 earnings guidance from a range of $1.60-$2.00 to $1.70-$2.05, compared to the consensus of $1.79 [2][7] - Full-year FY25 EPS is now projected at $1.95, slightly above the previous estimate of $1.90 [7] Future Outlook - Macy's anticipates a third-quarter adjusted loss of 15-20 cents per share, better than the consensus loss of 20 cents [3] - The company plans to close 150 underperforming stores as part of its "Bold New Chapter" strategy, which is expected to improve long-term margins [4] - Macy's aims to expand its luxury segment by 20% and targets $750 million in asset sales over the next three years [4] Tariff Impact - The company expects tariffs to reduce FY25 EPS by approximately 25-40 cents, which is more than previously forecasted [5] - Gross margin is projected to be pressured by 40-60 basis points, compared to the earlier estimate of 20-40 basis points [5] - As of the end of last year, about 20% of Macy's merchandise was sourced from China, down from over 50% before the pandemic [6] Strategic Adjustments - To mitigate tariff impacts, Macy's is renegotiating supplier terms, adjusting order volumes, evaluating pricing strategies, and diversifying sourcing [6]

Financial Data and Key Metrics Changes - The company reported a positive comparable store sales growth in Q2, with mid-single-digit increases in stores opened in the past couple of years [4] - E-commerce sales accelerated by nearly 18% in Q2 compared to Q1, indicating a strong performance in the online segment [4] - Gross margin improved by 30 basis points year-to-date, with expectations to be up 10 to 60 basis points for the full year [40][41] Business Line Data and Key Metrics Changes - The introduction of the Jordan brand has contributed to double-digit growth in the combined Nike and Jordan business [15] - The company has expanded its Nike assortment, increasing the square footage dedicated to Nike products by 10-15% across stores [28] - The company has seen a mid-teens acceleration in sales from customers earning over $100,000 annually, indicating a shift towards higher-income consumers [8] Market Data and Key Metrics Changes - Traffic from the lowest two income quintiles has decreased in high single digits, while the middle income quintile remains stable [6][7] - The company has successfully attracted higher-income customers, with a notable increase in sales from those making over $100,000 [8] Company Strategy and Development Direction - The company is focused on new store growth and has plans to expand the Jordan shop concept to all stores over the next two years [16] - The strategy includes a back-to-basics approach for the e-commerce platform, enhancing site functionality to improve customer experience [4] - The company aims to maintain its value proposition while navigating tariff impacts and adjusting pricing strategies accordingly [36] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about sustaining same-store sales growth, citing successful initiatives and a focus on value [35] - The company is prepared for potential price increases due to tariffs but believes its value offering will continue to attract customers [65] - Management noted that the consumer environment remains stable, with expectations of low single-digit inflation [64] Other Important Information - The company has pulled forward approximately $100 million in inventory at pre-tariff prices to mitigate tariff impacts [39] - The capital allocation strategy remains focused on stability, investing in growth initiatives, and returning value to shareholders through buybacks and dividends [62] Q&A Session Summary Question: Expectations for the consumer environment in FY '26 compared to FY '25 - Management indicated that the environment is expected to be similar, with potential price adjustments due to tariffs impacting consumer behavior [64] Question: Pricing elasticity response to price increases - Management noted varied responses to price increases, with some categories experiencing no unit erosion while others saw a negative reaction when crossing price thresholds [66][67] Question: Expectations for inventory growth in the second half - Inventory is up 8% in dollars and 4.5% in units per store, with adjustments made for unit buys in the second half [73] Question: Margins outlook outside of tariff costs - Management sees upside opportunities in supply chain efficiencies and has launched a new warehouse management system to improve operations [77] Question: Competitive landscape and market share consolidation - Management anticipates some consolidation in the market due to the hidden costs of tariffs affecting companies with weaker balance sheets [81]

Canada and the US agreed to hold technical talks on sectoral tariffs after officials met with Commerce Secretary Howard Lutnick last week, said Canadian cabinet minister Dominic LeBlanc. https://t.co/QZUxGKsl4N ...

Inflation Impact - Tariffs are projected to increase U_S_ inflation by 1_0% to 1_5% this year [1]

Mexico is considering enacting new tariffs on countries with which it does not have a trade agreement, including China, President Claudia Sheinbaum said https://t.co/Iu3wkYG55r ...

Welcome back to Money Movers. In 2017, New York's iconic Waldorf Historia Hotel closed for extensive renovations. Now, eight years later, the doors to the Waldorf are back open for bookings in the nearly 400 guest rooms and suites.And today, the hotel announcing the reopening of its 43,000 square ft of event spaces, including a 1500 person capacity grand ballroom, a historic one. I got a chance to be in there with the CEO, Chris Netta of Hilton. We also talked exclusively about the company's bet on luxury, ...

Meanwhile, let's stick with the Fed and the path forward for rate cuts following ADP this morning showed a dramatic slowdown in private sector hiring during the month of August. Joining us here at Post9 this morning is UBS Global Wealth Senior Portfolio Manager Alan Rexoff. And Alan, welcome back.Good to have you. >> Carl, it's great to be here. Hi.>> Were you were you unnerved by ADP. >> Uh, you know, I think what you're seeing is that there is a focus now on employment and because of that, you're seeing 9 ...

Business Performance & Strategy - Best Buy's sales are trending towards the higher end of expectations, but the company reaffirms guidance due to consumer volatility and potential tariff impacts [2][3] - Gaming, computing, mobile phones and wearables are strong categories, driven by upgrade cycles from pandemic-era purchases [4][8][9] - Appliances and home theater are experiencing weakness, echoing trends seen at Home Depot and Lowe's [4] - Best Buy is tailoring its approach to health tech, focusing on both new technologies and the needs of an aging consumer [5] - The company is leveraging AI to drive computing growth, focusing on consumer education and device selection [6][7] Tariffs & Pricing - The effective calculated tariff rate is approximately 16% for Best Buy, but the actual impact on consumers is materially lower due to mitigation strategies [12] - Best Buy is diversifying its supply chains and working with partners to diversify sourcing countries to mitigate tariff impacts [11] - The company is focused on offering a broad assortment of products at various price points to accommodate different customer budgets [10][13] Store Development - Best Buy is evolving its store formats, including smaller footprint stores to augment existing markets or enter new ones [13][14] - The company is experimenting with experiential stores in partnership with vendors, as well as leaner stores to reach a broader customer base [15]

President Trump turns to the Supreme Court in an attempt to preserve his sweeping tariffs, senators prepare to grill Health Secretary Robert F. Kennedy Jr. amid turmoil at the Centers for Disease Control and Prevention and Republicans are under pressure to release all the files in the Jeffrey Epstein investigation. For more context and news coverage of the most important stories of our day, click here: https://www.nbcnews.com » Subscribe to NBC News: http://nbcnews.to/SubscribeToNBC » Subscribe to Here's th ...

Financial Data and Key Metrics Changes - The company reported a leverage ratio of around 2.5, which is at the higher end of its target range of 2% to 2.5% [57] - The company aims to achieve a net reduction in debt by the end of the year, which will help improve the leverage ratio [57][58] Business Line Data and Key Metrics Changes - The U.S. Automotive business is experiencing a choppy environment, with a focus on improving service levels for independent owners and company-owned stores [25][30] - The discretionary part of the market has been flat, but the company is strategically focusing on tools and equipment to drive growth in this segment [33][34] - The European business is under pressure but is leveraging the NAPA brand to differentiate itself in a challenging market [45][46] Market Data and Key Metrics Changes - The company has seen a shift in the market dynamics, with tariffs and inflation impacting pricing strategies [14][16] - The European market is facing geopolitical uncertainties, but the company is making significant investments to improve profitability in key countries [47][48] Company Strategy and Development Direction - The company is focused on board refreshment and strategic planning, with an Investor Day planned for 2026 to share insights on business perspectives [9][10] - The company is targeting a long-term mix of 50% independent owners and 50% company-owned stores, with a current mix of 35% to 65% [37][40] - The company is committed to thoughtful M&A strategies, especially in a tough market where it can be an acquirer of choice [75] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about the second half of 2025, expecting improvements in market clarity and consumer sentiment [60][66] - The company is focused on navigating ambiguous macro environments and believes that its investments will pay off when market conditions improve [67][68] Other Important Information - The company has established a global command center to manage tariff-related complexities and ensure effective communication with suppliers [18][19] - Significant investments have been made in inventory management to ensure availability for both automotive and industrial segments [69][71] Q&A Session All Questions and Answers Question: How comfortable is the company with its current leverage? - The company is comfortable with its leverage at the higher end of the range and plans to focus on deleveraging in the near term [57] Question: What are the expectations for inventory growth into the second half? - The company emphasizes the importance of inventory availability and has made significant investments to strengthen its inventory position [69] Question: What is the outlook for non-tariff margin drivers like freight, wages, and materials into 2026? - It is too early to tell, but the company is monitoring these costs closely and expects some moderation in increases [72] Question: Will market share consolidation in the industry speed up, slow down, or remain the same in 2026? - The company believes that market share consolidation will speed up, benefiting from its position as a serial acquirer [75]