Macy’s (M) M Q2 Financial Results Summary

# Macy’s, Inc. (NYSE: M) Q2 2025 Financial Results Summary

Macy’s, Inc. released its financial results for the second quarter of 2025 on September 3, 2025. Here’s a summary of the key financial metrics and highlights:

## Second Quarter Highlights

– **Net Sales:**
– Achieved net sales of **$4.8 billion**, slightly down by **2.5%** compared to Q2 2024.

– **Earnings Per Share (EPS):**
– GAAP diluted EPS was **$0.31**;
– Adjusted diluted EPS was **$0.41**, down from **$0.53** a year ago.

– **Comparable Sales:**
– Comparable sales increased by **0.8%** on an owned basis and **1.9%** on an owned-plus-licensed-plus-marketplace (O+L+M) basis, exceeding previous guidance.

– **Reimagine 125 Locations:**
– Showed comparable sales growth of **1.1%** on an owned basis and **1.4%** on an O+L basis.

– **Bloomingdale’s:**
– Recorded a **3.6%** increase on an owned basis and **5.7%** on an O+L+M basis, marking its fourth consecutive quarter of growth.

– **Bluemercury:**
– Reported comparable sales growth of **1.2%**, continuing its streak with **18 consecutive quarters** of gains.

– **Shareholder Returns:**
– Returned **$100 million** to shareholders through **$50 million** in dividends and **$50 million** in share repurchases.

## Financial Performance Comparison (Q2 2025 vs. Q2 2024)

– **Total Revenue:**
– Total revenue was **$4.999 billion**, down from **$5.096 billion** (-**1.9%**).

– **Cost of Sales:**
– Reported at **$2.9 billion**, with a gross margin rate of **39.7%**, reflecting a decline of **80 basis points** compared to the previous year.

– **Selling, General & Administrative (SG&A) Expenses:**
– Total SG&A was **$1.9 billion**, a decrease of **$29 million**; however, SG&A as a percentage of total revenue increased to **38.9%**, a rise of **20 basis points**.

– **Net Income:**
– GAAP net income was **$87 million**, a decrease compared to **$150 million** in Q2 2024, representing **1.7%** of total revenue (down from **2.9%**).

– **Adjusted Net Income:**
– Adjusted net income was **$113 million**, dropping from **$149 million**, or **2.3%** of total revenue (down from **2.9%**).

– **Adjusted EBITDA:**
– Adjusted EBITDA was **$393 million**, constituting **7.9%** of total revenue, down from **$438 million** (8.6%).

## Other Financial Metrics

– **Merchandise Inventories:**
– Decreased by **0.8%** year-over-year.

– **Debt Management:**
– Ended Q2 2025 with **$2.6 billion** in total debt, having executed financing transactions that led to a net long-term debt reduction of **$340 million**.

## Guidance for 2025

– Macy’s raised its annual guidance for net sales to between **$21.15 billion** and **$21.45 billion**.
– Adjusted diluted EPS guidance revised to **$1.70 to $2.05**, up from prior estimates.
– Expected comparable sales change for O+L+M remains in the range of **down ~1.5% to down ~0.5%** vs. 2024.

## Shareholder Returns Updates

– The board declared a quarterly dividend of **18.24 cents per share**, scheduled to be paid on **October 1, 2025**, with the record date set for **September 15, 2025**.
– Share repurchase program continues, with **4.0 million shares repurchased** in Q2, totaling **12.6 million** for the first half of 2025.

Macy’s, Inc. highlighted significant improvements in comparable sales and a commitment to returning value to shareholders amidst a challenging retail environment. The financial tact has been focusing on enhancing customer experience and flexibility driven by the Bold New Chapter initiatives.