Macy's Inc

Latest Results (20.11.2025):

Macy’s, Inc. reported results for the second quarter of 2025 showing stronger-than-expected top- and bottom-line performance: net sales of $4.8 billion, best comparable-sales growth in 12 quarters, and raised full-year net sales and adjusted diluted EPS guidance.

Net sales & comparable sales

Macy’s, Inc. Q2 2025 net sales were $4.8 billion (down 2.5% year-over-year inclusive of store closures). Comparable sales were up 0.8% on an owned basis and up 1.9% on an owned‑plus‑licensed‑plus‑marketplace (O+L+M) basis; go‑forward business comps were up 1.1% owned and 2.2% O+L+M.

Profitability (EPS & income)

GAAP diluted EPS was $0.31 and Adjusted diluted EPS was $0.41 in Q2 2025 (both above company guidance). GAAP net income was $87 million; Adjusted net income was $113 million.

Nameplate performance

Macy’s nameplate comps: +0.4% owned (+1.2% O+L+M). Reimagine 125 locations: +1.1% owned. Bloomingdale’s: net sales +4.6%, comps +3.6% owned (+5.7% O+L+M). Bluemercury: net sales +3.3%, comps +1.2% (its 18th consecutive quarter of gains).

Margins and operating costs

Gross margin rate was 39.7%, down 80 basis points due to proactive markdowns and prior tariff impacts. SG&A was $1.9 billion (down $29 million), but SG&A as a percent of revenue rose to 38.9% driven by lower net sales and continued investments in go‑forward initiatives.

EBITDA and operating metrics

Adjusted EBITDA was $393 million (7.9% of revenue) and Core Adjusted EBITDA was $377 million (7.5% of revenue), both below year‑ago levels reported for Q2 2024.

Balance sheet & liquidity

Cash and cash equivalents were $829 million at quarter end, with $2.0 billion of borrowing capacity under the ABL. The company completed financings in July/August that reduced long‑term debt by ~$340 million and left no material long‑term maturities until 2030; total debt was $2.6 billion (includes $194 million redeemed later in August).

Shareholder returns

Macy’s, Inc. returned $100 million to shareholders in H1 2025 ($50 million in dividends, $50 million in buybacks in Q2). Q2 repurchases were 4.0 million shares for $50 million; H1 repurchases totaled 12.6 million shares for $151 million. About $1.2 billion remained under the $2.0 billion repurchase authorization.

Guidance & outlook

The company raised full‑year net sales guidance to $21.15–$21.45 billion and adjusted diluted EPS to $1.70–$2.05, while noting expected gross margin impacts from tariffs in H2 2025 and a more promotional consumer environment. The updated comparable‑sales guidance is modestly improved versus prior guidance.