Macy’s reported fiscal second-quarter earnings on Wednesday that surpassed Wall Street expectations, with executives crediting revamped stores and stronger consumer spending for the improvement. Revenue is now expected to fall between US $ 21.15 billion and US $ 21.45 billion, compared with its earlier forecast of US $ 21 billion to US $ 21.4 billion.
For the quarter ending 2nd August, Macy’s reported revenue coming in at US $ 4.81 billion, slightly ahead of the US $ 4.76 billion forecast but down from US $ 4.94 billion a year earlier. Net income stood at US $ 87 million, compared with US $ 150 million, in the same period last year.
Chief executive officer Tony Spring said the retailer was well positioned to navigate current market conditions. He noted that tariff impacts had already been factored into the outlook and described the company’s approach as “cautiously optimistic.” According to Spring, Macy’s is focusing on improving customer experience, refining product assortments, and maintaining a healthy inventory position heading into the fall season.
Spring added that consumer demand remained resilient, particularly in categories such as denim, women’s contemporary apparel, and watches, which helped deliver Macy’s best comparable sales growth in 12 quarters.
Macy’s highlighted that the 125 stores it has prioritised with higher staffing and renovations outperformed the broader Macy’s brand, recording a 1.1% comparable sales increase. Its other banners also posted growth, with Bloomingdale’s reporting a 3.6% rise in comparable sales and Bluemercury up 1.2%. The company further reported a US $ 28 million year-on-year increase in credit card revenue, bringing the total to US $ 153 million.
Spring said the strength of Macy’s business lay in the performance of multiple categories, which had helped sustain growth across its portfolio.
Chief financial officer Tom Edwards told analysts that the company was evaluating further selective price increases to offset tariffs. He said adjustments would be made carefully in collaboration with partners to remain competitive, and expressed confidence in Macy’s ability to navigate the current economic environment.
