Macy’s Wins Today’s Stock Market after Over-Performing for Second Quarter
Macy's reported their Q2 earnings and outperformed estimates, causing a massive stock jump that has their shareholders very pleased.
Quick overview
- Macy's stock surged over 18% after reporting significantly better than expected second quarter earnings.
- The company increased its sales forecasts and adjusted earnings for the year following strong performance across its store divisions.
- Macy's earnings per share reached $0.41, nearly double the anticipated figure, despite a slight revenue decline of 2% to $5 billion.
- Overall, Macy's improved profitability by cutting expenses and reported better sales growth compared to the last 12 quarters.
Macy’s (M) climbed more than 18% on Wednesday after posting far better than anticipated second quarter earnings. The company beat expectations for both sales and profits.
Today’s biggest stock market winner appears to be Macy’s with an excellent Q2 report for its Bloomingdale’s, Bluemercury, Reimagine, and Macy’s stores. As a result of the earnings news, Macy’s decided to increase their sales forecasts and their adjusted earnings for the year.
Macy’s increased their guidance after reporting sales increases compared to the previous year. Their earnings per share for the second quarter came in at $0.41, which was nearly twice what was anticipated.
Revenue was down to $5 billion, which is just a 2% drop from the previous year. That was actually good news for the company since it was higher than expected. For the second quarter, comparable store sales were up by 0.4%. Macy’s stores reported a 3.8% decline in sales, but most of the company’s other store division reported sales increases.
Macy’s Incredible Performance
In almost every category, Macy’s performed better than expected, beating analyst expectations and their own targets. On top of those positive revenue reports, the company also managed to improve its profitability by a considerable margin. They cut expenses by $29 million, bringing overall costs to $1.9 billion. The company targeted administrative, general, and selling expenses to make this happen. They closed several Macy’s stores and implemented a large number of cost-cutting methods.
How well did Macy’s do compared to previous quarterly reports? According to the company’s CEO Tony Spring, they performed better this quarter than in the last 12 quarters in terms of sales growth. However, investors should know that Macy’s stock is down about 4.3% for the 2025 year so far. Their current surge could help carry them back up to their 2025 starting point, but it may not be enough to make it one of the year’s better performing stocks.
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