Macy’s beat analysts’ expectations for sales and raised earnings guidance for the rest of the year in its Q2 earnings results.
The retailer shook off earlier fears that tariffs could undermine its business. Company leaders credited a strong strategy and omnichannel emphasis for Macy’s turnaround successes so far. Macy’s net sales declined 2.5% year over year to $4.8 billion during the quarter. But that result remained higher than anticipated.
“Our teams achieved better than expected top- and bottom-line results during the second quarter, driven by our strongest comparable sales growth in 12 quarters, reflecting the strong performance in Macy’s Reimagine 125 locations, Bloomingdale’s and Bluemercury,” said Tony Spring, chairman and chief executive officer of Macy’s Inc. “Our performance highlights the advantages of being a multi-brand, multi-category, omnichannel retailer.”
Macy’s ranks No. 17 in Digital Commerce 360’s Top 2000 Database. The Top 2000 ranks the largest North American online retailers by their annual ecommerce sales. The company appears in the Apparel & Accessories category. Digital Commerce 360 projects Macy’s total web sales in 2025 will reach $7.21 billion.
Macy’s web sales by year
Macy’s sales outperform as Reimagine 125 strategy continues
Net sales at Macy’s exceeded its own previous guidance. The company is in mid-turnaround as it implements its Reimagine 125 strategy, which focuses on 125 key stores for reinvestment and user experience refreshing. The strategic initiative has shown promising results, with these locations consistently outperforming the broader Macy’s chain in comparable sales growth.
Other notable takeaways from Macy’s Q2 report include:
- Bloomingdale’s posted its fourth consecutive quarter of growth with comparable sales up 3.6% on an owned basis and increasing 5.7% on an owned-plus-licensed-plus-marketplace basis.
- Bluemercury reported comparable sales growth of 1.2%, marking its 18th consecutive quarter of gains.
Digital strategy ties Macy’s portfolio together
Spring noted that while the flagship Macy’s brand has been turning things around, other brands in the portfolio —namely Bloomingdale’s, its small-format version Bloomies and Bluemercury — are all performing well with a strong digital strategy that ties them all together.
“I invite you to look at Macys.com today versus just three months ago,” Spring stated. “We’re providing a richer, product-driven, trend-driven storytelling experience.”
Marty Bauer, ecommerce and retail expert at the ecommerce marketing automation platform Omnisend, said Macy’s has been working hard to create a shopping experience that consumers can’t find elsewhere while emphasizing an omnichannel environment.
“Their private-label brands and exclusive partnerships have helped differentiate them and attract customers,” Bauer told Digital Commerce 360. “They’ve also integrated more technology in their stores, creating a more engaging in-store experience.”
Bauer believes Macy’s focus on omnichannel is paying off.
“They’ve improved their website, become more aggressive with social media efforts, and optimized their stores to sell online,” he said. “This has helped boost both online and brick-and-mortar sales.”
He noted that the brand is also leveraging its loyalty program to collect data, personalize marketing efforts, and create targeted offers.
Macy’s skeptics remain cautious
Still, not all experts are sold on a Macy’s revival.
“Whether a ‘turnaround’ is on the horizon remains an open question,” says Michael Zakkour, founder and chief strategist at brand consultancy 5 New Digital.
Zakkour said Macy’s faces significant headwinds, some not of their own making, including the decline of the department store and mall as primary shopping channels, tariff issues and digital-first challengers.
“But the big miss and question is whether they can recover from having been incredibly slow in building an integrated, ‘new retail’ ecosystem that blends online, offline, technology, supply chain and media,” Zakkour stated.
The modern retail challenge
Consumers have one overriding demand today, Zakkour explained: “Spoil me, or else.”
Otherwise, those customers may quickly move to another retailer, brand or platform that does. Zakkour said they want ubiquity, integrated online and offline platforms, great content and to be made to feel like people used to when they visited Disney, where “everyone is a VIP.”
For Macy’s, it’s going to take guts, daring, and open-mindedness to adapt to the modern retail and consumer paradigm, Zakkour explained.
“The alternative is yet another iconic American retailer going the way of horsewhip makers who went under when cars were introduced,” he said.
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