US' Macy's beats Q2 estimates, raises FY25 outlook

Bloomingdale’s led with sales up 4.6 per cent and comparable sales rising 3.6 per cent (owned) and 5.7 per cent (O+L+M). Bluemercury posted its 18^th consecutive quarter of gains with 1.2 per cent growth, while Macy’s Reimagine 125 locations outperformed with a 1.1 per cent increase on an owned basis, Macy’s said in a press release.

The overall net sales declined 2.5 per cent due to store closures, while gross margin fell 80 basis points to 39.7 per cent on Spring markdowns. SG&A expenses declined $29 million to $1.9 billion, aided by cost controls. Net income was $87 million versus $150 million a year earlier, while adjusted net income stood at $113 million. Adjusted EBITDA came in at $393 million, down from $438 million in Q2 2024. The company also returned $100 million to shareholders through dividends and buybacks.

Following these results, Macy’s raised its FY25 guidance, projecting net sales of $21.15–$21.45 billion, up from $21.0–$21.4 billion. Adjusted diluted EPS is expected between $1.7 and $2.05, compared with $1.6–$2 previously.

The comparable O+L+M sales are forecast to decline by 1.5 per cent to 0.5 per cent versus 2024, with go-forward business sales expected to range from down 1.5 per cent to flat. Adjusted EBITDA margin guidance is unchanged at 7.4–7.9 per cent, with core adjusted EBITDA margin at 7–7.5 per cent, added the release.

“Our teams achieved better than expected top- and bottom-line results during the second quarter, driven by our strongest comparable sales growth in 12 quarters, reflecting the strong performance in Macy’s Reimagine 125 locations, Bloomingdale’s and Bluemercury,” said Tony Spring, chairman and chief executive officer (CEO) at Macy’s, Inc. “Our performance highlights the advantages of being a multi-brand, multi-category, omni-channel retailer. The substantive, enterprise-wide improvements across our business, with a strong focus on customer experience, give us further confidence that our Bold New Chapter initiatives can drive sustainable, long-term profitable growth.”

ALCHEMPro News Desk (SG)