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]

Earnings Report - Macy's, Inc. is set to release its fourth-quarter earnings results on September 3, with analysts expecting earnings of 19 cents per share, a decrease from 53 cents per share in the same period last year [1] - The anticipated quarterly revenue is $4.7 billion, down from $4.94 billion a year earlier [1] - The company's board declared a regular quarterly dividend of 18.24 cents per share on August 22 [1] Stock Performance - Macy's shares increased by 2% to close at $13.49 on Tuesday [2] - Analysts have provided various ratings and price targets for Macy's stock, reflecting differing outlooks on the company's performance [2] Analyst Ratings - Telsey Advisory Group maintained a Market Perform rating with a price target of $14 [7] - JP Morgan maintained a Neutral rating and raised the price target from $12 to $16 [7] - Citigroup kept a Neutral rating and increased the price target from $11 to $12 [7] - Morgan Stanley maintained an Equal-Weight rating but reduced the price target from $14 to $12 [7] - Goldman Sachs downgraded the stock from Buy to Neutral and cut the price target from $17 to $12 [7]

Core Insights - Kohl's stock has surged nearly 24% in a single day due to stronger-than-expected earnings and an improved profit forecast, despite ongoing challenges such as declining sales and leadership instability [2][6][8] - The stock has increased by 10% year to date, raising questions about its potential for further growth, contingent on successful turnaround initiatives [3][7] Financial Performance - Kohl's gross margin rose to nearly 40% in Q2 2025, an increase of 28 basis points year-over-year, while SG&A expenses decreased by over 4% [6] - The company has raised its full-year EPS guidance to $0.50–$0.80, up from a previous estimate of $0.10–$0.60, indicating management's confidence in the sustainability of the turnaround [6] Growth Opportunities - The partnership with Sephora is attracting younger consumers and boosting higher-margin sectors, while store redesigns are aimed at enhancing impulse purchases and private-label product visibility [6][7] - Kohl's is focusing on categories like home goods and children's wear for additional growth potential [6] Challenges - Same-store sales fell by 4.2% in Q2, marking another quarter of contraction, which poses a significant concern for the company's turnaround efforts [6] - Analysts suggest Kohl's is experiencing a brand identity crisis, being caught between discount retailers and high-end brands, making it vulnerable to price wars [6][8] - Leadership instability, with the company having its fifth CEO in three years, complicates strategic execution and increases execution risk [6][8]

Core Viewpoint - Wall Street anticipates a year-over-year decline in earnings for Macy's due to lower revenues, with a focus on how actual results compare to estimates impacting stock price [1][2] Earnings Expectations - Macy's is expected to report quarterly earnings of $0.19 per share, reflecting a year-over-year decrease of 64.2% [3] - Revenue projections stand at $4.74 billion, which is a 4% decline from the previous year [3] Estimate Revisions - The consensus EPS estimate has been revised 8.62% higher in the last 30 days, indicating a reassessment by analysts [4] - A positive Earnings ESP of +7.53% suggests analysts have recently become more optimistic about Macy's earnings prospects [12] Earnings Surprise Prediction - The Zacks Earnings ESP model indicates that a positive reading is a strong predictor of an earnings beat, especially when combined with a Zacks Rank of 1, 2, or 3 [10] - Macy's currently holds a Zacks Rank of 3, indicating a likelihood of beating the consensus EPS estimate [12] Historical Performance - In the last reported quarter, Macy's exceeded the expected earnings of $0.14 per share by delivering $0.16, resulting in a surprise of +14.29% [13] - Over the past four quarters, Macy's has beaten consensus EPS estimates three times [14] Conclusion - While Macy's is positioned as a compelling earnings-beat candidate, other factors should also be considered when evaluating the stock ahead of its earnings release [17]

Financial Data and Key Metrics Changes - The company reported a net sales decline of 5.1% in Q2 and 4.6% year-to-date, with comparable sales down 4.2% in Q2 and 4% year-to-date [31][32] - Adjusted earnings per diluted share were $0.56 for the quarter, with adjusted net income of $64 million [37][30] - Gross margin increased by 28 basis points to 39.9% in Q2, driven by category mix benefits and strong inventory management [35][31] - SG&A expenses decreased by 4.1% to $1.2 billion in Q2, benefiting from lower spending [35][31] Business Line Data and Key Metrics Changes - The women's category showed improvement, particularly in proprietary brands, with a flat comp performance in July [11][12] - The accessories business outperformed the company average, driven by jewelry and the Sephora partnership, with jewelry sales up 12% [13][16] - Men's and kids' categories were the weakest performers, with declines in spring assortments, although proprietary brands like Tech Gear showed strength [18] Market Data and Key Metrics Changes - Digital sales outpaced store sales, driven by strong conversion rates and improved coupon offerings [32][33] - The Kohl's card customer segment underperformed, with sales down in the low teens, while new and non-Kohl's card customers showed positive growth [33][34] Company Strategy and Development Direction - The company is focused on three strategic priorities: offering a curated assortment, reestablishing value and quality, and delivering a frictionless shopping experience [9][19] - There is an emphasis on proprietary brands to enhance customer trust and loyalty, with plans to introduce new proprietary brands [20][21] - The company is adjusting its promotional strategies to include more brands in coupon eligibility, which has shown immediate positive impacts on digital sales [22][23] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenging macroeconomic environment and consumer pressure, particularly among lower to middle-income customers [8][40] - The outlook for the remainder of the year includes a projected net sales decline of 5% to 6%, with a focus on maintaining gross margin expansion [40][41] - Management expressed confidence in the company's ability to build on momentum from the first half of the year, despite ongoing uncertainties [30][40] Other Important Information - The company ended the quarter with $174 million in cash and cash equivalents, and inventory levels declined by 5% [38][39] - Capital expenditures for the year are expected to be around $400 million, primarily for Sephora and Impulse line rollouts [39] Q&A Session Summary Question: What initiatives are having the greatest impact on the top line? - Management highlighted the focus on proprietary brands and their alignment with consumer value preferences as key drivers for improvement [45][46] Question: How do you see the cadence of comps for Q3 and Q4? - Management expects a similar cadence to the first half, with some potential upsides in both quarters [51][52] Question: Can you provide updates on adding brands back to coupon eligibility? - Management confirmed the addition of about 50 brands, with immediate positive impacts seen in digital sales [58][59] Question: What are the key drivers of comp metrics? - The primary driver of improvement was traffic, with efforts focused on regaining trips from core customers [68][70] Question: How is the company addressing tariff impacts? - Management is actively negotiating with suppliers and adjusting buying strategies to mitigate tariff impacts while maintaining competitive pricing [71][73]

Financial Data and Key Metrics Changes - Comparable sales decreased by 4.2% in Q2 2025, with adjusted earnings per diluted share at $0.56, both exceeding expectations [6][32] - Net sales declined by 5.1% in Q2 and 4.6% year-to-date, primarily due to fewer transactions in stores [32] - Gross margin increased by 28 basis points to 39.9% in Q2, driven by category mix benefits and strong inventory management [35][36] - SG&A expenses decreased by 4.1% to $1.2 billion in Q2, benefiting from lower spending in stores and marketing [36] Business Line Data and Key Metrics Changes - Women's business showed improvement, particularly in proprietary brands, with a flat comp performance in July [12][21] - Jewelry business outperformed with a 12% increase compared to last year, driven by investments in fashion jewelry [14][15] - Men's and kids' categories were the weakest performers, with declines in spring seasonal assortments [19] Market Data and Key Metrics Changes - Digital sales outpaced store sales, driven by strong conversion rates and improved coupon offerings [33] - Kohl's card customer segment underperformed, with sales down in the low teens for the quarter [33] Company Strategy and Development Direction - The company is focused on three strategic priorities: offering a curated assortment, reestablishing Kohl's as a leader in value and quality, and delivering a frictionless omnichannel experience [10][20][25] - There is an emphasis on proprietary brands to enhance value and customer loyalty, with plans to introduce new proprietary brands [21][22] Management's Comments on Operating Environment and Future Outlook - Management acknowledges ongoing macroeconomic challenges and consumer pressure, particularly among lower to middle-income customers [8][41] - The outlook for the remainder of the year anticipates a net sales decline of 5% to 6%, with comparable sales expected to decline by 4% to 5% [41][42] Other Important Information - The company ended the quarter with $174 million in cash and cash equivalents, and inventory levels declined by 5% [38][39] - Capital expenditures for the year are expected to be around $400 million, focusing on Sephora rollout and other initiatives [40] Q&A Session Summary Question: What initiatives are having the greatest impact on the top line? - Management highlighted the focus on proprietary brands and their alignment with consumer value preferences as key drivers for improvement [44][45] Question: How do you see the cadence of comps for Q3 and Q4? - Management expects a similar cadence to Q2, with some potential upsides in both quarters due to improved traffic and digital performance [50][51] Question: Can you provide an update on adding brands back to coupon eligibility? - Management confirmed that they have added about 50 brands back to coupon eligibility, which has positively impacted digital sales [57][58] Question: What are the key drivers of comp metrics? - The primary driver of improvement has been traffic, with efforts focused on regaining customer trips and engagement [67][70] Question: How is the company addressing tariff impacts? - Management is actively negotiating with suppliers and adjusting buying strategies to mitigate tariff impacts while maintaining competitive pricing [72][74]

Financial Data and Key Metrics Changes - Comparable sales decreased by 4.2% in Q2 2025, with adjusted earnings per diluted share at $0.56, both exceeding expectations [6][32] - Net sales declined by 5.1% in Q2 and 4.6% year-to-date, primarily due to fewer transactions, especially in stores [32] - Gross margin increased by 28 basis points to 39.9% in Q2, driven by category mix benefits and strong inventory management [35][36] - SG&A expenses decreased by 4.1% to $1.2 billion in Q2, benefiting from lower spending in stores and marketing [36] - Adjusted net income for the quarter was $64 million, with a one-time pretax gain of $129 million from a credit card interchange fee lawsuit [38] Business Line Data and Key Metrics Changes - Women's business showed improvement, particularly in proprietary brands, with a nearly 40% increase in the petites category [12][14] - Jewelry business grew by 12% year-over-year, driven by investments in fashion jewelry and establishing a destination for accessories [14][15] - Men's and kids' categories were the weakest performers, with declines in spring seasonal assortments [19] - Digital sales outpaced store sales, driven by strong conversion rates and improved coupon offerings [33] Market Data and Key Metrics Changes - Lower to middle-income customers remain pressured, prioritizing value and trading down to lower price point products [8][10] - Higher-income customers have shown more resilience in spending [8] - The digital channel has seen strong performance, particularly from new and non-Kohl's card customers [33] Company Strategy and Development Direction - The company is focused on three strategic priorities: offering a curated assortment, reestablishing Kohl's as a leader in value and quality, and delivering a frictionless omnichannel shopping experience [10][20] - There is an emphasis on investing in proprietary brands to enhance customer trust and loyalty [21][23] - The company aims to improve promotional strategies by making more brands coupon eligible, which has already shown positive results [24][25] Management's Comments on Operating Environment and Future Outlook - The management acknowledges ongoing macroeconomic challenges and consumer pressure, particularly among lower-income customers [10][41] - The outlook for the remainder of the year anticipates a net sales decline of 5% to 6%, with comparable sales expected to decline by 4% to 5% [41][42] - Management remains optimistic about the progress made against strategic initiatives, although they recognize that these efforts will take time to yield results [31][41] Other Important Information - The company ended the quarter with $174 million in cash and cash equivalents, and inventory levels declined by 5% [39] - Capital expenditures for the year are expected to be around $400 million, focusing on Sephora rollout and other strategic initiatives [40] Q&A Session Summary Question: What initiatives are having the greatest impact on the top line? - Management highlighted the focus on proprietary brands and their alignment with consumer value preferences as key drivers for improvement [44][45] Question: How do you see the cadence of comps in Q3 and Q4? - Management expects a similar cadence, with some potential upsides in both quarters, driven by strong inventory management and proprietary brand performance [50][52] Question: Can you provide an update on adding brands to coupon eligibility? - Management confirmed that they have added about 50 brands recently, with immediate positive impacts seen in the digital channel [57][58] Question: What are the key drivers of comp metrics? - The primary driver of improvement has been traffic, with a focus on regaining trips from core customers [67][70] Question: How is the company addressing tariff impacts? - Management is actively negotiating with suppliers and adjusting buying strategies to mitigate tariff impacts while maintaining competitive pricing [72][74]

Q2 2025 Financial Performance - Net sales decreased by (5.1%) compared to Q2 2024[50] - Comparable sales declined by (4.2%)[50] - Gross margin increased by 28 basis points to 39.9% compared to 39.6% in Q2 2024[50, 52] - SG&A expense decreased by (4.1%) compared to last year[50] - Adjusted operating income was $161 million[50] - Adjusted net income was $64 million, or $0.56 of adjusted earnings per diluted share[50] Balance Sheet and Leverage - Net debt + leases to adjusted EBITDAR leverage ratio is 2.6x when adjusting for actual lease periods exercised, down from the unadjusted ratio of 4.4x[59, 61] - Merchandise inventories decreased to $2.994 billion from $3.151 billion[64] 2025 Outlook - Net sales are expected to decrease by (5%) to (6%) versus 2024[68] - Comparable sales are expected to decrease by (4%) to (5%)[68] - Adjusted operating margin is projected to be 2.5% to 2.7%[68] - Adjusted diluted EPS is expected to be $0.50 to $0.80[68]

Core Viewpoint - Dillard's, Inc. has declared a cash dividend of $0.30 per share on its Class A and Class B Common Stock, reflecting the company's commitment to returning value to shareholders [1] Group 1 - The dividend is scheduled to be payable on November 3, 2025 [1] - Shareholders of record must be noted by September 30, 2025 to receive the dividend [1]

Group 1: Ardmore Shipping (ASC) - Ardmore Shipping is engaged in the ownership and operation of product and chemical tankers, carrying a Zacks Rank 1 (Strong Buy) [1] - The Zacks Consensus Estimate for Ardmore Shipping's current year earnings has increased by 2.6% over the last 60 days [1] - The company has a price-to-earnings ratio (P/E) of 9.15, significantly lower than the industry average of 19.5, and possesses a Value Score of A [2] Group 2: Dillard's (DDS) - Dillard's is a large departmental store chain featuring fashion apparel and home furnishings, also carrying a Zacks Rank 1 [2] - The Zacks Consensus Estimate for Dillard's current year earnings has increased by 2.6% over the last 60 days [2] - Dillard's has a price-to-earnings ratio (P/E) of 16.25, which is lower than the industry average of 19.80, and possesses a Value Score of A [3] Group 3: Healthcare Services Group (HCSG) - Healthcare Services Group provides housekeeping, laundry, linen, facility maintenance, and food services to the healthcare industry, including nursing homes and hospitals, and carries a Zacks Rank 1 [4] - The Zacks Consensus Estimate for Healthcare Services Group's current year earnings has increased by 4.8% over the last 60 days [4] - The company has a price-to-earnings ratio (P/E) of 17.31, compared to the industry average of 21.10, and possesses a Value Score of A [5]