Macy's, Inc. reported its financial results for the second quarter and first half of fiscal 2025, revealing a decline in both net sales and profitability compared to the previous year. For the 13 weeks ended August 2, 2025, the company generated total revenue of $4.999 billion, a decrease of 1.9% from $5.096 billion in the same period last year. Net income fell to $87 million, or $0.31 per diluted share, down from $150 million, or $0.53 per diluted share, in the second quarter of 2024. The decline in revenue was attributed primarily to the closure of 64 non-go-forward locations, which accounted for approximately $170 million of the decrease in net sales.
In the first half of 2025, total revenue was $9.791 billion, down from $10.096 billion in the first half of 2024, with net income decreasing to $124 million from $212 million. The company's gross margin rate also declined, falling to 39.5% from 39.9% in the prior year, driven by markdowns on early Spring assortments and the impact of tariffs. Selling, general, and administrative expenses decreased slightly to $3.856 billion from $3.884 billion, reflecting ongoing cost containment efforts and the impact of closed locations.
Macy's strategic initiatives, outlined in its "A Bold New Chapter" plan, continue to focus on enhancing the customer experience and optimizing operations. The company has reimagined 125 locations, which have shown improved performance in customer traffic and sales metrics. Additionally, Bloomingdale's achieved record sales and customer satisfaction scores, while Bluemercury reported its 18th consecutive quarter of comparable sales growth. The company is also investing in digital and technology capabilities to streamline operations and improve efficiency.
Operationally, Macy's reported that digital sales accounted for 31% of total net sales in the second quarter, up from 29% in the prior year. The company has also seen growth in its credit card revenues, which increased to $153 million from $125 million year-over-year, reflecting a strong credit portfolio. As of August 2, 2025, Macy's had cash and cash equivalents of $829 million, an increase from $646 million a year earlier, and maintained a robust asset-based credit facility of $2.1 billion.
Looking ahead, Macy's management expressed cautious optimism, noting that the company expects to continue its focus on enhancing customer engagement and operational efficiency. The ongoing execution of its strategic initiatives is anticipated to support future growth, although the company remains mindful of market conditions and the impact of store closures on overall performance.
About Macy's, Inc.
Macy's, Inc. is a leading American retailer operating department stores, including Macy's and Bloomingdale's, offering apparel, accessories, cosmetics, and home goods. It serves diverse customer segments across the U.S. and internationally through physical stores and digital platforms. The company emphasizes private label brands, omni-channel retailing, and real estate strategies to differentiate itself and drive growth in a highly competitive, seasonal, and global supply chain environment.
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