Macy’s, Inc. has reported its financial results for the second quarter of 2025, with several key highlights. The company achieved net sales of $4.8 billion, exceeding its guidance. Macy’s, Inc. delivered GAAP diluted EPS of $0.31 and adjusted diluted EPS of $0.41, both above the company’s guidance. Comparable sales were up 0.8% on an owned basis and up 1.9% on a comparable owned-plus-licensed-plus-marketplace (O+L+M) basis, also surpassing the company’s guidance.
Macy’s reimagine 125 locations achieved comparable sales growth of 1.1% on an owned basis and up 1.4% on an owned-plus-licensed (O+L) basis, outperforming the broader Macy’s nameplate. Bloomingdale’s posted its fourth consecutive quarter of growth with comparable sales up 3.6% on an owned basis and increasing 5.7% on an O+L+M basis. Bluemercury reported comparable sales growth of 1.2%, marking its 18th consecutive quarter of gains.
In terms of specific metrics, Macy’s, Inc. net sales, inclusive of store closures, decreased 2.5% to $4.8 billion, with comparable sales up 0.8% on an owned basis and up 1.9% on an O+L+M basis. The company’s go-forward business comparable sales were up 1.1% on an owned basis and up 2.2% on an O+L+M basis.
Macy’s, Inc. achieved a gross margin rate of 39.7%, which declined 80 basis points, reflecting proactive markdowns on remaining early spring product to maintain healthy inventories and product bought under prior tariff rates. Selling, general and administrative (“SG&A”) expense of $1.9 billion decreased $29 million, driven by the net impact of the benefit from closed Macy’s locations and cost containment efforts, partially offset by investments in the company’s go-forward business.
The company’s GAAP net income was $87 million, or 1.7% of total revenue, and adjusted net income was $113 million, or 2.3% of total revenue. This is compared to the second quarter of 2024, where net income was $150 million, or 2.9% of total revenue, and adjusted net income was $149 million, or 2.9% of total revenue. Adjusted EBITDA was $393 million, or 7.9% of total revenue, and core adjusted EBITDA was $377 million, or 7.5% of total revenue, compared to the second quarter of 2024, where adjusted EBITDA was $438 million, or 8.6% of total revenue, and core adjusted EBITDA was $402 million, or 7.9% of total revenue.
Macy’s, Inc. ended the second quarter of 2025 with cash and cash equivalents of $829 million and had $2.0 billion of available borrowing capacity under its asset-based credit facility. The company completed financing transactions to further fortify its balance sheet, increase financial flexibility, and modestly reduce leverage, resulting in a net reduction of long-term debt of approximately $340 million.
In terms of shareholder returns, the company returned $50 million in cash to shareholders in the second quarter of 2025 and $100 million in the first half of 2025. The company repurchased 4.0 million of its shares for $50 million during the second quarter of 2025, bringing total repurchases in the first half of 2025 to 12.6 million shares for $151 million. Macy’s, Inc. had approximately $1.2 billion remaining under its $2.0 billion share repurchase authorization as of the end of the second quarter of 2025.
The company has also revised its annual guidance, including raising net sales and adjusted diluted EPS guidance, to reflect the second quarter of 2025 performance and the anticipated gross margin impact of current tariffs in the third and fourth quarters. The full outlook for 2025, including third quarter of 2025, can be found in the presentation posted to the company's website.
Following these announcements, the company's shares moved 1.97%, and are now trading at a price of $13.49. If you want to know more, read the company's complete 8-K report here.
