Financial Data and Key Metrics Changes - Macy's Inc. achieved comparable sales growth of 1.9%, with adjusted EPS of $0.41, exceeding guidance of $0.15 to $0.20 [5][18][23] - Net sales were $4.8 billion, down 2.5% year-over-year, primarily due to the closure of 64 non-GoForward stores [18][19] - Gross margin was 39.7% of net sales, slightly better than expectations, impacted by proactive markdowns and tariffs [21][22] Business Line Data and Key Metrics Changes - Macy's brand achieved 1.2% comparable sales growth, driven by GoForward locations which rose 1.5% [6][19] - Bloomingdale's reported a 5.7% increase in comparable sales, marking its fourth consecutive quarter of growth [11][12] - Bluemercury achieved 1.2% comparable sales growth, its 18th consecutive quarter of gains, driven by skincare and new brand launches [13][14] Market Data and Key Metrics Changes - The luxury market remains competitive, but Bloomingdale's is gaining market share through brand expansions and digital growth [12][81] - The consumer remains resilient, with a notable portion of Macy's customer base earning over $100,000 household income [47][48] Company Strategy and Development Direction - The "Bold New Chapter" strategy focuses on enhancing customer experience, expanding product offerings, and optimizing operations [5][14] - The company is investing in Reimagined 125 stores, which have shown positive performance and customer satisfaction [40][41] - Future growth will be supported by expanding private brands and leveraging partnerships with market brands [52][56] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism about the consumer's resilience but remains prudent due to potential tariff impacts [14][46] - The company anticipates a tariff impact of 40 to 60 basis points on gross margin, adjusting pricing strategies accordingly [25][42] - The outlook for the third quarter and full year includes a cautious view on consumer demand and potential impacts from tariffs [24][25] Other Important Information - The company returned $251 million to shareholders through dividends and share repurchases, with $1.2 billion remaining on the buyback authorization [23][24] - Management emphasized the importance of maintaining a healthy balance sheet and liquidity profile to navigate market challenges [29] Q&A Session Summary Question: Drivers of sequential improvement in same-store sales - Management noted strong growth across various categories, with July being the strongest month, driven by back-to-school shopping [33][34] Question: Learnings from Reimagined 125 stores and expansion plans - Positive performance was noted in both the first and next 75 Reimagined stores, with local empowerment being a key factor [39][40] Question: Consumer sentiment and pricing strategies amid tariffs - Management sees the consumer as resilient but choiceful, with a cautious approach to pricing adjustments based on category performance [46][47] Question: SG&A savings and growth opportunities - SG&A was down nearly $30 million, with continued savings expected in the second half while reinvesting in growth initiatives [60][61] Question: Impact of tariffs on gross margin and future guidance - Tariffs had a notable impact in Q2, with management focused on mitigation strategies and maintaining competitive pricing [80][83] Question: Investments in service and balancing growth with SG&A leverage - Management is committed to investing in customer-facing initiatives while managing costs effectively to drive growth [94][95]