Macy's posts strong results, raises guidance as turnaround begins to take hold — SkimNews
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- Macy's posted fiscal Q2 comparable sales up 2.7% overall and 1.1% at its namesake brand, with growth driven by "reimagined" stores that are central to the turnaround
- Bloomingdale's comparable sales jumped 11.3% and Bluemercury rose 6.2%, showing the company's higher-end nameplates are far outpacing the flagship
- Macy's raised full-year net sales guidance to $21.68 billion-$21.83 billion (from $21.5 billion-$21.75 billion) and lifted its comparable sales outlook to 1%-1.5% growth from 0.5%-1.2%
- Macy's hiked full-year EPS guidance to $2.15-$2.35 from $2-$2.20, a bump that includes roughly 5 cents per share from $116 million in tariff refunds the company received
- Macy's will reinvest $96 million of those tariff refunds into customer experience and turnaround initiatives rather than temporary price cuts, with CEO Tony Spring preferring "lasting power" over one-time benefits
- Macy's reported Q2 revenue of $4.87 billion versus the $4.83 billion analysts expected, and net income of $169 million ($0.62/share) versus $87 million ($0.31/share) a year earlier
Why it matters: Bloomingdale's is doing roughly 10x the comparable sales growth of the namesake Macy's brand, validating the strategy that differentiated, higher-end formats outperform in a strained department store sector. Macy's decision to bank $96 million of tariff refunds into long-term reinvestment rather than price cuts preserves margins but tests whether value-seeking shoppers will keep showing up without discounting.
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