growth at each of the company’s nameplates, particularly Bluemercury and Bloomingdale’s.  Overall, Macy’s Inc achieved net sales of US$4.8 billion, exceeding the company’s guidance but still down from US$4.9 billion in the prior corresponding period. However, as Global Data’s managing director, Neil Saunders pointed out, this was largely due to planned store closures and doesn’t discredit the brand’s overall improved performance since Tony Spring officially took over as CEO in February 2024. These improved metrics have led to a noticeable rise in Macy’s Inc’s stock value.  As of Wednesday morning, Macy’s Inc’s stock rose 20.7 per cent to US$16.19 a share, its highest point since January. “Today, we’re pleased that we delivered better than expected second quarter sales and earnings results across Macy’s, Inc,” the comapny said in a statement. “Enterprise-wide improvements made under our Bold New Chapter strategy are resonating with our customers. As a result, we raised and narrowed our net sales and adjusted diluted EPS guidance for the remainder of the year and are well positioned for the fall and holiday seasons.” How did Macy’s Inc pick up steam in Q2? Macy’s Inc’s Q2 report revealed that a significant portion of the corporation’s net sales came from the strong performance of Bloomingdale’s and Bluemercury. This season, Bloomingdale’s experienced its fourth consecutive quarter of growth with comparable sales up 3.6 per cent on an owned basis and up 5.7 per cent on an O+L+M basis compared to the previous quarter. Meanwhile, Bluemercury reported comparable sales growth of 1.2 per cent, its 18th consecutive quarter of gains. Additionally, as Saunders remarked, “The reimagined stores, which are the ones Macy’s is investing in, are seeing metrics move steadily in the right direction.” Macy’s 125 ‘Reimagine’ locations achieved comparable sales growth of 1.1 per cent on an owned basis and up 1.4 per cent on an owned-plus-licensed (“O+L”) basis, continuing to outperform the broader Macy’s nameplate. Saunders stated that while “there is still a lot to do, this [result] serves as an early proof point that the actions being undertaken by Tony Spring and team to ‘clean house’ and get the retail basics back on track at the Macy’s nameplate are starting to bear fruit.” It should also be noted that there has been notable progress with cost-cutting initiatives, which is reflected in the Q2 report. The corporation confirmed that selling, general and administrative expenses fell US$29 million to US$1.9 billion. The lower expenses were partly due to cost-cutting efforts and savings from stores that have been closed.  What to expect from Macy’s Inc in Q3 & Q4 Moving forward into Q3 and Q4, analysts predict that tariffs may cast a shadow over the company’s momentum. Macy’s Inc announced that it expects the gross margin for 2025 to be about 60 to 100 basis points below last year.  Assuming that current tariffs remain in place, the company estimated a combined tariff impact to gross margin of roughly 40 to 60 basis points, versus its prior expectation of 20 to 40 basis points. Macy’s Inc’s COO and CFO Tom Edwards told analysts that the majority of this impact will likely be felt in Q4. Ongoing efforts to offset tariffs include “shared cost negotiations, vendor discounts and strategically raising tickets,” Edwards said. However, all being said, experts believe that Macy’s Inc should continue moving forward on the path to properly turning things around.  As CI&T’s global director of retail strategy, Melissa Minkow told Inside Retail, “I felt initially that ‘The Bold New Chapter’ was pretty vague when introduced and appeared to be along the lines of status quo. However, after hearing Spring’s reflection on the successful quarter, it’s clear that Macy’s focus on resonant assortment, improved inventory management and pricing strategy has paid off.” Minkow added that she would like to see how the corporation plans to invest in AI and other digital developments to further along progress of the brand’s revival, but commends Macy’s Inc for the work it has done thus far. “I am now optimistic for Q3, as this approach signals that even in the face of uncertainty, Macy’s has gotten the fundamentals in the right places,” said Minkow.  “The numbers certainly need to push further north, but a solid start has been made,” concluded Saunders. Further reading: Macy’s store closures: a necessary step or the wrong move?