Core Viewpoint - Macy's stock surged over 20% following a significant turnaround strategy that resulted in positive same-store sales for the first time in three years, although the company plans to continue closing stores to improve operating profit [1][3]. Financial Performance - In Q2, Macy's reported a 1.9% year-over-year increase in same-store sales, marking the largest increase in three years and the first positive growth since Q1 2022 [1]. - The overall revenue for Q2 decreased by 2.8% to $4.81 billion, slightly above market expectations of $4.76 billion [3]. - Adjusted earnings per share were $0.41, significantly higher than the market expectation of $0.18 [3]. - Macy's raised its fiscal year revenue and profit forecasts, now expecting net sales to reach $21.45 billion, slightly above previous estimates and analyst expectations [3]. Store Strategy - The company plans to close 66 unprofitable stores this year and a total of 150 stores over the next three years, reducing the total number of stores from 506 in Q2 last year to 449 as of August 2 [3][4]. - CEO Tony Spring emphasized the importance of adjusting the store portfolio while maintaining the relevance of physical stores [4]. Market Outlook - Despite the positive adjustments, there are concerns about the visibility of comparable sales and profit growth in the short term due to macroeconomic pressures and competitive retail environment [5]. - Macy's stock has declined over 6% this year, underperforming the S&P 500 index [6]. - The company is observing resilient consumer spending, although consumers are making more cautious purchasing decisions [6].