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As the warrior poet LL Cool J once said, “Don’t call it a comeback.”
Macy’s has been down and out for years, struggling through the rise of e-commerce and subsequent decline of department stores, before plummeting during the pandemic and never really recovering. But today, shares popped 20.61% after the retailer revealed a surprisingly healthy second-quarter earnings report.
The highlight was the marquee Macy’s brand itself, which reported its first same-store sales growth after 12 consecutive quarters of declines. Meanwhile, Bloomingdale's earned its fourth straight quarter of comparable sales growth, while Bluemercury enjoyed its 18th consecutive quarter of same-store sales gains. All of that helped the company beat revenue expectations and absolutely crush Wall Street’s EPS forecasts last quarter.
Macy’s turnaround plan, dubbed “A Bold New Chapter,” was put into effect last spring and has seemingly begun bearing fruit. Management is focusing on business lines that are selling well, such as denim, watches, and women’s apparel, while working to reduce exposure to China and keeping tariff-related price increases to a minimum.
In other words, this is what LL Cool J would call the breakthrough.—MR