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 Performance - Macy's Inc's net sales were $48 billion, a decrease of 25% compared to 2Q24, but an increase of 09% excluding store closures[38] - Comparable owned sales increased by 08% compared to 2Q24[39] - Comparable owned-plus-licensed-plus-marketplace (O+L+M) sales increased by 19% compared to 2Q24[41] - Go-Forward Business comparable O+L+M sales increased by 22% compared to 2Q24[43] - Adjusted diluted earnings per share (EPS) was $041[10], a decrease of 226% compared to 2Q24[49] Brand Performance - Macy's nameplate comparable O+L+M sales increased by 12% compared to 2Q24[48] - Macy's Go-Forward business comparable O+L+M sales increased by 15% compared to 2Q24[15] - Bloomingdale's comparable O+L+M sales increased by 57% compared to 2Q24[18] - Bluemercury comparable owned sales increased by 12% compared to 2Q24[23] Inventory and Operations - Inventory decreased by 08% compared to 2Q24[25] Capital Allocation - Dividend payments amounted to $100 million[53] - Share repurchases totaled $151 million[54] - Net long-term debt reduction of approximately $340 million was achieved[56] FY25 Guidance - Net sales are projected to be between $2115 billion and $2145 billion, representing a decrease of 15% to 05% compared to FY24[61] - Comparable O+L+M sales are expected to decrease by approximately 15% to 05% compared to FY24[61] - Adjusted EBITDA rate is projected to be between 74% and 79%[61] - Adjusted diluted EPS is projected to be between $170 and $205[61]