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].

Investment Rating - The report maintains a "Buy" rating for JD Group [1] Core Insights - The company's revenue and profit exceeded expectations, with a revenue of 356.66 billion yuan in Q2 2025, representing a year-on-year growth of 22.4%. However, the Non-GAAP net profit was 7.39 billion yuan, a decline of 48.91% year-on-year, resulting in an adjusted net profit margin of 2.07% compared to 4.96% in the same period of 2024 [12][27] - The supermarket category continues to recover, and service and 3P business growth exceeded expectations, with product sales revenue reaching 282.41 billion yuan, up 20.7% year-on-year, and service and other income at 74.25 billion yuan, up 29.1% year-on-year [15][19] - The company is focusing on enhancing user engagement and expanding its PLUS membership, which is expected to drive further growth in electronic products and home appliances [18][19] Summary by Sections Revenue and Profit Performance - In Q2 2025, JD Group's total revenue was 356.66 billion yuan, a 22.4% increase year-on-year, while Non-GAAP net profit was 7.39 billion yuan, down 48.91% year-on-year [12][27] Business Segment Growth - The electronic products and home appliances segment generated 178.98 billion yuan, growing 23.4% year-on-year, while daily necessities revenue was 103.43 billion yuan, up 16.4% year-on-year [18] - Platform and advertising service revenue reached 28.51 billion yuan, a 21.7% increase, and logistics and other service revenue was 45.74 billion yuan, up 34.3% year-on-year [19] Cost and Efficiency - The company's operating costs were 300.02 billion yuan, a 22.2% increase year-on-year, with a gross margin of 15.9%, up 0.1 percentage points year-on-year [22] - Fulfillment expenses rose 28.6% to 22.15 billion yuan, with a fulfillment expense ratio of 6.2%, an increase of 0.3 percentage points [22] Earnings Forecast and Investment Rating - The EPS (Non-GAAP) forecast for 2025-2027 has been adjusted to 9.0, 12.8, and 15.7 yuan, respectively, with corresponding PE ratios of 12.7, 8.9, and 7.2 times [27]

Group 1 - The core categories of electronic products and home appliances are experiencing a recovery in growth, benefiting from the trade-in policy [1][3] - The company has adjusted its non-GAAP net profit forecasts for 2025-2027 to 27.7 billion, 46 billion, and 52.6 billion yuan, reflecting a year-on-year growth rate of -42%, +66%, and +15% respectively [1] - The company reported Q2 2025 revenue of 356.7 billion yuan, a year-on-year increase of 22.4%, exceeding Bloomberg's consensus estimate [2] Group 2 - The company's retail operating profit margin improved by 0.6 percentage points to 4.5%, while the logistics operating profit margin decreased by 1.1 percentage points to 3.8% [2] - New business losses were higher than expected, primarily due to continued investments in the food delivery segment [2][3] - The company repurchased approximately 2.8% of its outstanding common shares as of December 31, 2024, with a remaining repurchase amount of 3.5 billion dollars [3]

Investment Rating - The investment rating for JD Group is "Buy" (maintained) [1] Core Insights - JD Group's Q2 2025 performance exceeded expectations, with revenue of 356.7 billion yuan, a year-on-year increase of 22.4%, surpassing Bloomberg consensus estimates of 335.5 billion yuan [5] - Non-GAAP net profit for Q2 2025 was 7.4 billion yuan, a decline of 49% year-on-year, but also better than the expected 5.35 billion yuan [5] - The company has adjusted its non-GAAP net profit forecasts for 2025-2027 to 27.7 billion, 46 billion, and 52.6 billion yuan respectively, reflecting a year-on-year growth rate of -42%, +66%, and +15% [4] Revenue and Profit Analysis - Revenue from product sales grew by 20.7% year-on-year, with core electronics and home appliances increasing by 23.4% [5] - Service revenue rose by 29.1%, driven by a 21.7% increase in platform and advertising services due to user traffic growth [5] - The retail operating profit margin improved by 0.6 percentage points to 4.5%, while logistics operating profit margin decreased by 1.1 percentage points to 3.8% [5] Business Strategy and Market Position - The company is benefiting from the "trade-in" policy for electronics and home appliances, which has significantly improved core business performance [4] - Continued investment in the food delivery business is expected to enhance user engagement and cross-purchase rates, contributing to long-term growth [6] - JD Group's share buyback program has repurchased approximately 2.8% of its outstanding shares, with a remaining buyback amount of 3.5 billion USD [6] Financial Summary and Valuation Metrics - For 2025, the projected revenue is 1,313.5 billion yuan, with a year-on-year growth of 13.3% [7] - The projected diluted EPS for 2025 is 8.7 yuan, with a corresponding P/E ratio of 12.7 times [7] - The gross margin is expected to remain stable around 15.5% for the coming years [7]

Core Insights - JD.com reported a total revenue of 356.7 billion yuan for Q2 2025, representing a year-on-year growth of 22.4% [1] - The net profit attributable to ordinary shareholders was 6.2 billion yuan, down from 12.6 billion yuan in the same period last year [1] - The diluted earnings per American Depositary Share were 4.15 yuan, compared to 8.19 yuan in the previous year [1] Business Segment Performance - JD Retail's revenue grew by 20.6% year-on-year, reaching 310.1 billion yuan [1] - Revenue from electronics and home appliances increased by 23.4% and 16.4%, amounting to 178.98 billion yuan and 103.43 billion yuan respectively [1] - New business segments, including food delivery, saw explosive growth with revenues of 13.85 billion yuan, up 198.8% from 4.64 billion yuan in the same quarter last year [1] Expenditure Insights - Fulfillment expenses rose from 17.2 billion yuan to 22.1 billion yuan during the reporting period [1] - Marketing expenses more than doubled, increasing from 11.9 billion yuan to 27 billion yuan, accounting for 7.6% of total revenue [1]