In this articleM your favorite stocksCREATE FREE ACCOUNTScott Olson | Getty ImagesMacy's posted second-quarter earnings Wednesday that easily topped Wall Street's expectations, as it said revamped stores helped sales trends.The department store operator also raised its full-year earnings and sales guidance.
It now expects adjusted earnings of between $1.70 and $2.05 per , compared with $1.60 to $2 per , and revenue between $21.15 billion and $21.45 billion, compared with $21 billion to $21.4 billion.The stock was up more than 10% before the bell.Macy's had slashed its full-year guidance last quarter and reported uncertainty in sales due to President Donald Trump's tariffs."We're just well-positioned right now for the environment we're in to take , to der for our customers and to vide a better experience," CEO Tony Spring told CNBC in an interview.Last quarter, the company said it was hiking prices of certain ducts to offset tariff costs.
Spring said Wednesday that the company now has tariff impacts included in its outlook and remains cautiously optimistic the future."Tariffs are real.
It's a component of the , but we have tailwinds that we are trying to mitigate against those headwinds," Spring said.
"That's a better customer experience, that's a newer asment, that's less redundancy in our asment, that's now a that's growing across all three nameplates in our portfolio and a healthy inventory position going into the fall season."Spring added that the consumer remains resilient and continues to spend on new items and fashion.Macy's said it saw its best comparable sales growth in 12 quarters, and Spring said the retailer's strategy is leaning into segments that are working to keep its momentum going, including growth in denim, women's contemporary apparel and watches.Here's how the company performed during its second fiscal quarter, compared with what Wall Street was anticipating, based on a survey of analysts by LSEG:Earnings per : 41 cents adjusted vs.
18 cents expectedRevenue: $4.81 billion vs. $4.76 billion expectedIn the three-month period that Aug.
2, the company's net income was $87 million, or 31 cents per , compared with $150 million, or 53 cents per , the year prior.
Net sales dropped from $4.94 billion in the year-ago period to $4.81 billion.
Adjusted earnings per were 41 cents.Macy's said the group of 125 stores that the company has chosen to focus on with higher staffing and renovations, outperformed the broader Macy's brand, seeing comparable sales growth of 1.1% on an owned basis.The department store also owns Bloomingdale's, which reported comparable sales growth of 3.6% on an owned basis, and Bluemercury, which saw comparable sales rise 1.2%.
Those two brands have consistently performed better than the Macy's namesake stores.The company also reported a $28 million increase in credit card net revenues to $153 million."When you think the strength of a department store or a marketplace, it's when multiple are working," Spring said Wednesday.CFO Tom Edwards said on a call with analysts on Wednesday that Macy's is exploring more price hikes on certain ducts because of tariffs."We're adjusting prices, but as appriate, not broad-based and really assessing it with our partners in an effort to remain competitive," Edwards said.
"I believe that we are really well-positioned to navigate through this time given our model."