Macy's Q2 Tops Street, Lifts FY25 Outlook; Stock Climbs In Pre-market

Macy's

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(RTTNews) - Omni-channel fashion retailer Macy's, Inc. (M) reported Wednesday lower profit in its second quarter with weak net sales. However, adjusted earnings and top line beat market estimates, driven by higher comparable sales. Further, the firm raised fiscal 2025 outlook.

In the pre-market activity, Macy's shares were gaining around 12.3 percent to trade at $15.15.

Looking ahead to fiscal 2025, the company now projects adjusted earnings in a range of $1.70 to $2.05, higher than the prior guidance range of $1.60 to $2.00 per share.

The company now projects net sales between $21.15 billion and $21.45 billion, higher than the $21.0 billion and $21.4 billion expected earlier.

The Wall Street analysts on average expect the company to report earnings of $1.78 per share on sales of $21.18 billion. Analysts' estimates typically exclude special items.

Comparable owned-plus- licensed-plus-marketplace sales is now expected to decline around 1.5 percent to 0.5 percent, while previous estimate was down around 2.0 to 0.5 percent.

The company guidance revision reflects second-quarter performance and the anticipated gross margin impact of current tariffs in the third and fourth quarters.

In the second quarter, the company's net income was $87 million, lower than prior year's $150 million. Earnings per share dropped to $0.31 from $0.53 last year.

Adjusted net income was $113 million, compared to $149 million last year. Adjusted earnings per share were $0.41, compared to $0.53 in the previous year.

Macy's achieved net sales of $4.81 billion, down 2.5 percent $4.94 billion a year ago.

The Street expected earnings of $0.19 per share on sales of $4.70 billion for the quarter.

However, comparable sales edged up 0.8 percent on an owned basis and up 1.9 percent on an owned-plus-licensed-plus-marketplace or O+L+M basis. The company noted that comparable sales reflected positive comparable sales at each of the company's nameplates.

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