Macy's Inc. (NYSE:M) stock surged on Wednesday after the fashion department chain reported better-than-expected second-quarter earnings and raised its fiscal outlook.
- M stock is racing ahead of the pack. Get the inside scoop here.v
The retailer reported net sales of $4.81 billion for the quarter, down 2.5% year over year, beating the consensus of $4.76 billion and the management guidance of $4.65 billion-$4.75 billion.
Comparable sales up 0.8% on an owned basis and up 1.9% on a comparable owned-plus-licensed-plus-marketplace (O+L+M) basis, above the company’s guidance, benefiting from positive comparable sales across nameplates.
“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, Macy’s chairman and CEO.
Also Read: Denim Trend Boosts Abercrombie & Fitch Outlook
Macy’s, go-forward business comparable sales were up 1.1% on an owned basis and up 2.2% on an O+L+M basis.
Bloomingdale’s net sales were up 4.6%. Comparable sales were up 3.6% on an owned basis and up 5.7% on an O+L+M basis.
Bluemercury’s net sales were up 3.3%. Comparable sales were up 1.2% on an owned basis.
Macy's reported adjusted earnings of 41 cents per share compared to the consensus of 18 cents and 53 cents a year ago, surpassing the management guidance of 15-20 cents per share.
Adjusted EBITDA was $393 million, and core Adjusted EBITDA was $377 million.
Fiscal Guidance:
Macy’s revised its annual guidance to reflect the second quarter of 2025 performance and the anticipated gross margin impact of current tariffs in the third and fourth quarters.
The retailer raised its 2025 earnings guidance from $1.60-$2.00 to $1.70-$2.05 versus the consensus of $1.79.
The company also raised its sales guidance from $21 billion-$21.4 billion to $21.15 billion-$21.45 billion compared to the consensus of $21.47 billion.
Third Quarter Guidance:
Macy’s expects adjusted loss of 15-20 cents per share versus the consensus loss of 20 cents. The company sees sales of $4.5 billion-$4.6 billion compared to the consensus of $4.53 billion.
M Price Action: Macy’s shares were up 19.87% at $16.17 at the time of publication on Wednesday. The stock is trading within its 52-week range of $9.76 to $18.13, according to Benzinga Pro data.
Read Next:
Photo: JHVEPhoto / Shutterstock.com
