Macy's Q2 sales exceed expectations, raises full-year outlook

Macy’s, Inc. reported stronger-than-expected financial results for the second quarter of 2025 and subsequently raised its full-year outlook. The company's net sales reached 4.8 billion dollars, exceeding its guidance. The market reacted positively to the news, with Macy's stock price witnessing an increase of 20.7 percent on the day of the announcement.

The quarterly performance was driven by a 0.8 percent increase in comparable owned sales and a 1.9 percent increase on a comparable owned-plus-licensed-plus-marketplace basis, which represents the company’s strongest comparable sales growth in 12 quarters. This growth was seen across all of the company’s nameplates, including Macy’s, Bloomingdale’s, and Bluemercury, which all posted positive comparable sales.

Strategic performance and financials

Macy's Reimagine 125 locations continued to outperform, with comparable sales growth of 1.1 percent.

Bloomingdale's achieved its fourth consecutive quarter of growth with a 3.6 percent increase in comparable owned sales, while Bluemercury marked its 18th consecutive quarter of gains with a 1.2 percent increase in comparable sales.

For the quarter, Macy’s reported a GAAP diluted EPS of 31 cents and an adjusted diluted EPS of 41 cents, both above guidance. Although gross margin rate declined by 80 basis points to 39.7 percent due to proactive markdowns and prior tariff rates, the company's net income was 87 million dollars.

Macy’s also returned 100 million dollars to shareholders through dividends and share repurchases during the quarter.

Upgraded 2025 outlook

Based on the strong second-quarter performance, Macy’s has revised its annual guidance upwards.

The company now expects net sales to be between 21.15 billion dollars and 21.45 billion dollars , an increase from the previous range of 21 billion dollars to 21.4 billion dollars. Adjusted diluted earnings per share (EPS) guidance has also been raised to a range of 1.70 dollars to 2.05 dollars, up from 1.60 dollars to 2 dollars.

Macy’s leadership is confident that its "Bold New Chapter" initiatives will drive sustainable, long-term profitable growth.