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Macy's

Macy's (M) Q2 2025 Earnings

Reported Aug 21, 2024 at 7:23 AM ET · SEC Source

Q2 25 EPS

$0.53

BEAT +76.67%

Est. $0.30

Q2 25 Revenue

$5.10B

MISS 0.44%

Est. $5.12B

vs S&P Since Q2 25

+31.1%

BEATING MARKET

M +64.1% vs S&P +33.0%

Market Reaction

Did M Beat Earnings? Q2 2025 Results

Macy's posted a sharply better-than-expected profit in Q2 2025, delivering adjusted diluted EPS of $0.53 against a consensus estimate of $0.30, a beat of 76.67%, even as the department store chain continued to navigate softer top-line trends. Revenue… Read more Macy's posted a sharply better-than-expected profit in Q2 2025, delivering adjusted diluted EPS of $0.53 against a consensus estimate of $0.30, a beat of 76.67%, even as the department store chain continued to navigate softer top-line trends. Revenue of $5.10 billion fell 3.5% year over year and came in just under the $5.12 billion consensus, reflecting a more cautious consumer and a heightened promotional backdrop. The profit outperformance was driven largely by meaningful margin expansion, with gross margin widening 240 basis points to 40.5% of net sales, fueled by lower discounting and favorable shortage trends tied to enhanced asset protection efforts. The company's "Bold New Chapter" strategy showed selective progress, with its priority First 50 Macy's locations posting a second straight quarter of comparable sales growth, even as the broader nameplate declined. Looking ahead, Macy's narrowed its full-year net sales guidance to $22.10 billion to $22.40 billion, acknowledging continued macro headwinds, while reaffirming its adjusted diluted EPS outlook for the year.

Key Takeaways

  • • Gross margin expansion of 240 basis points to 40.5% driven by lower discounting and favorable shortage
  • • Macy's First 50 locations achieved second consecutive quarter of positive comparable sales (up 1.0% owned-plus-licensed)
  • • Effective SG&A expense control with $7 million reduction
  • • Delivery expense improvement of 30 basis points from lower shipped volumes and cost savings
  • • Asset sale gains of $36 million from earlier-than-expected non-go-forward location sale
  • • Macy's Media Network revenue grew $4 million to $34 million driven by higher advertiser and campaign counts
  • • Credit card revenues increased $5 million to $125 million
24/7 Wall St

M YoY Financials

Q2 2025 vs Q2 2024, source: SEC Filings

24/7 Wall St

M Revenue by Segment

With YoY comparisons, source: SEC Filings

Q2 25 Q1 27

“During the second quarter, we delivered strong earnings performance in a challenging consumer environment. Our colleagues executed with discipline, supporting gross margin expansion and effective expense control throughout the organization. We are seeing signs of our strategy taking root, including two consecutive quarters of positive comparable sales in Macy's First 50 locations. We are encouraged by the early traction of our Bold New Chapter and remain committed to returning Macy's, Inc. to sustainable profitable growth.”

— Tony Spring, Q2 2025 Earnings Press Release

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