Macy’s Inc. ($M) Stock: Jumps Over 17% as Q2 Sales Rebound and Store Closures Continue

TLDR

• Macy’s stock jumped 17.5% to $15.85 after Q2 results.
• Same-store sales rose 1.9%, first positive growth since 2022.
• Net income fell to $87M, or $0.31 per share, from $150M last year.
• Revenue slipped 1.9% to $4.999B while adjusted EPS came in at $0.41.
• 66 store closures planned this year, 150 total by 2027.

Macy’s (NYSE: M) reported second-quarter 2025 earnings on September 3, with its stock trading at $15.85, up 17.5% during the session.

Macy’s, Inc. (M)

The retailer’s income for the quarter declined to $87 million, or $0.31 per share, compared to $150 million, or $0.53 per share, last year. Adjusted earnings reached $113 million, or $0.41 per share.

Revenue fell 1.9% to $4.999 billion from $5.096 billion a year ago. Despite the revenue decline, same-store sales rose 1.9%, marking Macy’s first positive quarter since early 2022 and its largest increase in three years.

Positive Momentum in Same-Store Sales

CEO Tony Spring, who assumed leadership in February 2024, said the results signal the beginning of momentum in Macy’s turnaround efforts. At 125 stores where the company invested in merchandise upgrades and customer service, same-store sales increased by 1.4%.

Spring highlighted consumer resilience, though he warned of uncertainty heading into the fall season due to potential tariff impacts and shifting buying behavior. He also noted that reimagined store formats were seeing strong customer engagement.

Strategic Store Closures

Macy’s continues to streamline operations through store closures. The company plans to shut 66 unprofitable locations this year and 150 total over the next three years. As of August 2, Macy’s operated 449 stores, down from 506 a year ago.

Spring emphasized the importance of maintaining a relevant store portfolio, balancing physical presence with efficiency. “We still have more locations and supply chain facilities to close,” he noted, underscoring the company’s ongoing strategy to rightsize its footprint.

Outlook and Analyst Views

Macy’s raised its fiscal year revenue and earnings outlook despite narrowing its same-store sales forecast to a decline of 0.5% to 1.5% year-over-year. While the leadership remains confident, Telsey Advisory Group’s Dana Telsey maintained a Market Perform rating, citing limited near-term visibility amid competitive retail conditions, macroeconomic pressures, and tariff risks.

Performance Overview

Despite Wednesday’s stock rally, Macy’s remains down 3.55% year-to-date, compared with a 9.15% gain for the S&P 500. Over the past year, Macy’s gained 7.83%, but the three-year return stands at only 5.42%, far behind the S&P 500’s 63.59%. Longer-term performance is stronger, with a five-year gain of 143.45%, outpacing the S&P 500’s 85.81%.

Macy’s management believes resilience in consumers, coupled with strategic adjustments and continued investment in stores, will help the company regain steady growth. The balance between improving in-store experiences and reducing underperforming locations remains key to its turnaround.

 

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