Scott Olson | Getty Images
Macy’s posted second-quarter earnings Wednesday that easily topped Wall Street’s expectations, as it said revamped stores helped sales trends.
The department store operator also raised its full-year earnings and sales guidance. It now expects adjusted earnings of between $1.70 and $2.05 per share, compared with $1.60 to $2 per share, and revenue between $21.15 billion and $21.45 billion, compared with $21 billion to $21.4 billion.
The stock was up 10% before the bell.
Macy’s had slashed its full-year guidance last quarter and reported uncertainty in sales due to President Donald Trump‘s tariffs.
“We’re just well-positioned right now for the environment we’re in to take share, to deliver for our customers and to provide a better experience,” CEO Tony Spring told CNBC in an interview.
Last quarter, the company said it was hiking prices of certain products to offset tariff costs. Spring said Wednesday that the company now has tariff impacts included in its outlook and remains cautiously optimistic about the future.
“Tariffs are real. It’s a component of the business, but we have tailwinds that we are trying to mitigate against those headwinds,” Spring said. “That’s a better customer experience, that’s a newer assortment, that’s less redundancy in our assortment, that’s now a business that’s growing across all three nameplates in our portfolio and a healthy inventory position going into the fall season.”
Macy’s said it saw its best comparable sales growth in 12 months, and Spring said the retailer’s strategy is leaning into business segments that are working to keep its momentum going, including growth in denim, women’s contemporary apparel and watches.
Here’s how the company performed during its second fiscal quarter, compared with what Wall Street was anticipating, based on a survey of analysts by LSEG:
- Earnings per share: 41 cents adjusted vs. 18 cents expected
- Revenue: $4.81 billion vs. $4.76 billion expected
In the three-month period that ended Aug. 2, the company’s net income was $87 million, or 31 cents per share, compared with $150 million, or 53 cents per share, the year prior. Net sales dropped from $4.94 billion in the year-ago period to $4.81 billion. Adjusted earnings per share were 41 cents.
