Macy's turnaround plan drives biggest sales jump in 12 quarters
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Macy's Inc. reported its quarterly earnings on Sept. 3. Photo: Craig T Fruchtman/Getty Images
Macy's Inc. delivered its strongest comparable-store sales growth in 12 quarters, fueled by Bloomingdale's and remodeled Macy's stores, the retailer said Wednesday.
Why it matters: After shuttering 64 stores earlier this year, the chain is showing traction in its "A Bold New Chapter" turnaround plan, despite pressure from tariffs.
The big picture: Despite the recent growth, Macy's expects shoppers to be "more choiceful" in the second half of the year — signaling caution on discretionary spending, executives said during Wednesday's earnings call.
- The worst tariff impact hit in the second quarter, but Macy's warns that most of the incremental pain will show up in the fourth quarter.
The intrigue: U.S. consumers plan to spend 5% less this holiday season compared to last year — the first pullback since 2020 — as rising costs and tariff worries weigh on wallets, according to PwC's 2025 Holiday Outlook out Wednesday.
What they're saying: "As it relates to tariffs, we are taking a surgical approach," Tony Spring, Macy's chair and CEO, said on a conference call. "We're going to have price increases. We've had some price increases."
- "We're also negotiating, you know, with the marketplace, it's not a one size fits all," Spring said. "We've tried to be really thoughtful about what categories can bear the cost."
Flashback: Macy's said in February 2024 that it planned to shutter 150 stores by the end of 2026 — about a third of its locations — and invest in its "350 go-forward Macy's locations."
By the numbers: Macy's stock was up nearly 13% in premarket trading, a sign that the sales news is being received well by investors.
More from Axios:
- Holiday shoppers plan first spending pullback since 2020, PwC report says
- Tariffs may mean earlier holiday deals, fewer choices, report says
- Starbucks to launch protein lattes on National Coffee Day
Editor's note: This story has been corrected to reflect that 64 stores have been closed (not 66).
