Macy’s Shares Plummet 12% After Cutting Sales Guidance for 2025 Despite Q2 Beat

Macy's, Inc. (NYSE:M) shares plunged more than 12% intra-day today after the department store chain slashed its full-year sales guidance, falling short of Street expectations.

For Q2 2025, Macy's reported earnings per share (EPS) of $0.53, far exceeding the projected $0.30. The company generated $5.1 billion in revenue, slightly surpassing analyst estimates of $5.06 billion.

However, comparable sales on an owned basis dropped by 4%, while owned plus licensed comparable sales declined by 3.3%, contrary to expectations for a modest 0.63% increase.

Macy's gross margin for the quarter improved to 40.5%, up from 38.1% last year and ahead of the estimated 39.8%. The retailer adjusted its full-year EPS guidance to a range of $2.55 to $2.90, in line with the Street estimate of $2.78. However, Macy's lowered its net sales forecast to between $22.1 billion and $22.4 billion, down from its previous outlook of $22.3 billion to $22.9 billion, with Street estimates at $22.66 billion.