Macy's 10-Q Report Highlights Growth in Q2 2025

By Ahmed Jameison • Thursday, September 11 12:00 • Permanent Link

Macy's, Inc. has recently released its 10-Q report, providing a detailed overview of its financial performance and operations. The company, an omni-channel retail organization, operates stores, websites, and mobile applications under the Macy's, Bloomingdale's, and Bluemercury brands. It has been executing its strategy, "A Bold New Chapter," which focuses on enhancing the omni-channel shopping experience and improving customer satisfaction.

In the second quarter of 2025, Macy's made progress on its strategic pillars. The company reported a 0.8% increase in comparable sales on an owned basis and a 1.9% increase on an owned-plus-licensed-plus-marketplace ("O+L+M") basis. Macy's also saw improvements in its net promoter score and performance in its Reimagine 125 locations. Bloomingdale's achieved its highest second quarter sales and net promoter score on record, while Bluemercury achieved its 18th consecutive quarter of comparable sales growth.

In terms of financials, Macy's reported a net income of $87 million for the second quarter of 2025, compared to $150 million in the same period in 2024. Diluted earnings per share were $0.31, down from $0.53 in the second quarter of 2024. The company's gross margin decreased by 80 basis points, primarily due to proactive markdowns on early Spring assortments and the impact of product bought under the 145% China tariffs. Additionally, Macy's reported a decrease in net interest expense, excluding loss on extinguishment of debt, primarily driven by a decrease in interest expense as a result of debt transactions.

For the 26 weeks ended August 2, 2025, Macy's reported a net income of $124 million, down from $212 million in the same period in 2024. Diluted earnings per share were $0.44, compared to $0.75 in the prior year. The company's gross margin rate decreased by 40 basis points, primarily due to proactive markdowns and the impact of product bought under the 145% China tariffs.

The report also highlighted the company's liquidity and capital resources, emphasizing its principal sources of liquidity, including cash from operations and the Amended & Extended ABL Credit Facility.

Following these announcements, the company's shares moved -0.99%, and are now trading at a price of $17.04. If you want to know more, read the company's complete 10-Q report here.

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