Macy’s saw a positive market reaction to its Q2 2025 results, with management highlighting gains from store portfolio optimization and stronger luxury and digital performance. CEO Tony Spring credited “omnichannel experience improvements and localized merchandising” for driving growth, particularly in the GoForward Macy’s locations, while cost discipline and inventory management also contributed to results. Spring emphasized that the company’s “multi-brand, multi-category, and multi-channel model” allowed Macy’s to capture demand across a broad range of consumer segments, helping offset continued softness in unit demand and lingering macroeconomic uncertainty.
Is now the time to buy M? Find out in our full research report (it’s free).
Macy's (M) Q2 CY2025 Highlights:
- Revenue: $5.00 billion vs analyst estimates of $4.87 billion (1.9% year-on-year decline, 2.7% beat)
- Adjusted EPS: $0.31 vs analyst estimates of $0.19 (66.2% beat)
- Adjusted EBITDA: $393 million vs analyst estimates of $312.5 million (7.9% margin, 25.8% beat)
- The company slightly lifted its revenue guidance for the full year to $21.3 billion at the midpoint from $21.2 billion
- Management raised its full-year Adjusted EPS guidance to $1.88 at the midpoint, a 4.2% increase
- Operating Margin: 3%, down from 4.4% in the same quarter last year
- Locations: 681 at quarter end, down from 720 in the same quarter last year
- Same-Store Sales were flat year on year (-4% in the same quarter last year)
- Market Capitalization: $4.61 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Macy's’s Q2 Earnings Call
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Matthew Boss (JP Morgan) asked about drivers of same-store sales improvement and how momentum tracked into Q3. CEO Tony Spring cited broad-based category growth and highlighted July as the strongest month, while emphasizing a “prudent” approach to guidance given tariff uncertainties.
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Dana Telsey (Telsey Advisory Group) inquired about learnings from Reimagined 125 stores and plans for further expansion. Spring noted improved performance from localized merchandising, staffing, and customer empowerment, and described a “surgical” approach to pricing in response to tariffs.
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Blake Anderson (Jefferies) questioned whether consumer sentiment had changed compared to earlier in the year. Spring replied that while consumers remain “choiceful,” resilience has continued, especially among higher-income segments, but caution is warranted due to pending tariff increases.
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Oliver Chen (TD Cowen) focused on private brand initiatives and longer-term comp leverage. Spring pointed to early positive results from refreshed private brands and partnerships, while CFO Tom Edwards identified opportunities for both gross margin and SG&A leverage as these initiatives scale.
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Alex Straton (Morgan Stanley) asked about SG&A savings and the acceleration in Bloomingdale’s results. Edwards detailed ongoing cost reductions from store closures and efficiency programs, while Spring highlighted Bloomingdale’s digital and brand expansions as key growth drivers.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will be monitoring (1) Macy’s ability to sustain positive comparable sales in GoForward and luxury banners despite a more cautious consumer, (2) the effectiveness of tariff mitigation strategies and their impact on gross margin, and (3) the pace of private brand expansion and associated margin improvements. Execution on digital initiatives and continued store portfolio optimization will also be important markers for tracking the company’s progress.
Macy's currently trades at $17.21, up from $13.50 just before the earnings. At this price, is it a buy or sell? Find out in our full research report (it’s free).
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