US department store chain Macy's has reported net sales of $4.8bn in the second quarter (Q2) of 2025 (ended 2 August), exceeding the company's expectations despite a 2.5% year-on-year decline.
The net sales include the impact of store closures.
In January, Macy’s confirmed the closure of 66 of its stores as part of a strategic overhaul.
The retailer reported a 0.8% increase in comparable sales on an owned basis and adjusted diluted earnings per share (EPS) of $0.41.
Macy’s CEO and chairman Tony Spring stated: “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.”
The company's Reimagine 125 locations reported 1.1% growth in comparable sales on an owned basis.
Bloomingdale's marked its fourth consecutive quarter of growth, with a 3.6% increase in comparable sales on an owned basis. Bluemercury also maintained its upward trajectory, reporting a comparable sales growth of 1.2%.
Bloomingdale's and Bluemercury reported net sales increases of 4.6% and 3.3% respectively.
The company's generally accepted accounting principles net income stood at $87m, with an adjusted net income of $113m. This is a decrease from the second quarter of 2024, in which net income was $150m.
Its adjusted earnings before interest, taxes, depreciation and amortisation were $393m, representing 7.9% of total revenue.
The gross margin rate declined by 80 basis points due to proactive markdowns and tariffs on earlier product purchases.
Macy's managed to reduce its selling, general and administrative (SG&A) expenses by $29m due to closed store benefits and cost containment, which were partially offset by investments in the company's growth initiatives.
Asset sale gains were reported at $16m, a decrease from the previous year's $36m.
Macy's has raised its 2025 guidance based on Q2 performance and the expected impact of tariffs in the latter half of the year. The company anticipates net sales to be between $21.15bn and $21.45bn, with an adjusted diluted earnings per share range of $1.70 to $2.05.
The company is continuing its efforts towards its Bold New Chapter strategy to support long-term sales growth through reinvestment.
Spring added: “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.”
