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Macy's turnaround shows promise as earnings beat estimates, outlook improves
Yahoo Finance • • business
Key Points:
- Macy's reported a 2.7% increase in same-store sales for the second quarter, surpassing Wall Street's 0.8% growth expectation and marking its fifth consecutive quarter of growth.
- Bloomingdale's luxury stores saw an 11.3% sales increase, and beauty chain Bluemercury grew sales by 6.2%, while Macy's flagship brand posted 1.1% growth, aided by revamped stores.
- The company is progressing with its "Bold New Chapter" strategy, closing 150 underperforming stores and reinvesting in 350 locations, focusing on appealing to middle- to upper-income consumers with curated merchandise and fashionable brands.
- Macy's adjusted earnings of $0.63 per share and net sales of $4.87 billion both exceeded analyst estimates, partly boosted by $116 million in tariff refunds following a Supreme Court ruling.
- Despite strong results, Macy's stock fell in premarket trading, with cautious Wall Street sentiment reflecting the stock's modest year-to-date gain compared to broader market performance.
