Macy's Transformation Pays Off as Q2 Results Crush Expectations

On September 5th, 2025, Macy's (NYSE: M) reported its Q2 earnings, delivering results that exceeded Wall Street's expectations and prompted the company to raise its full-year outlook.

The department store chain reported Q2 adjusted earnings per share (EPS) of $0.41 on sales of $4.81 billion, significantly outperforming the $0.18 per share on $4.76 billion in sales that analysts had anticipated. This represents a substantial earnings beat for the retailer.

Macy's also raised its full-year guidance, now expecting adjusted earnings between $1.70 and $2.05 per share, up from its previous range of $1.60 to $2.00. The company's revenue guidance also inched higher, to between $21.15 billion and $21.45 billion, from the prior $21 billion to $21.4 billion range.

The improved outlook is particularly notable, given that Macy's had cut its guidance just last quarter, citing pricing pressure from import duties. However, CEO Tony Spring acknowledged that tariffs remain a real challenge for the business, but pointed to improvements in store experiences and product mix as factors helping to offset those pressures.

While Macy's transformation is making progress, the retailer still faces significant structural challenges in an e-commerce-dominated environment. Ongoing import costs remain a significant risk in the short term, and consumer preference for online shopping poses a long-term challenge.