Macys Inc reported Q2 2025 results reflecting a modest top-line decline on a year-over-year basis but a meaningful sequential improvement as the quarter progressed. Revenue totaled $4.999 billion, down 1.9% year-on-year, yet up 4.3% quarter-over-quarter versus Q1 2025, driven by a more favorable mix and ongoing promotional discipline. Gross margin remained robust at approximately 41.99%, underscoring pricing power and mix benefits, while gross profit declined modestly YoY to about $2.099 billion. Operating income reached $155 million, yielding an operating margin of 3.10%, with EBITDA of $358 million and an EBITDA margin of about 7.16%, signaling continued operating efficiency despite a challenging consumer backdrop.
Net income stood at $87 million for the quarter, translating to a net margin of roughly 1.74% and diluted earnings per share (EPS) of $0.31-$0.32. The quarter showed a pronounced QoQ rebound in profitability: net income rose about 129% QoQ (vs Q1 2025 net income of ~$38 million) and EPS advanced in line with this trajectory. These results occurred against a backdrop of ongoing SG&A discipline (selling, general and administrative expenses around $1.944 billion) and depreciation & amortization of $218 million. The combination of a stable gross margin, continuous cost control, and favorable mix supports a cautious but constructive view on Macy’s ability to navigate near-term macro softness while preserving brand and channel leadership in omnichannel retail.
From an investor perspective, the key takeaways are the resilience of Macy’s gross margin, the modest but improving operating profitability on a QoQ basis, and the continued emphasis on efficiency and balance-sheet discipline. The year-over-year headwinds in revenue and net income imply a consumer environment that remains uneven, but the sequential gains suggest Macy’s is benefiting from its omnichannel strategy and improved promotional effectiveness. In the near term, the stock will likely be sensitive to end-demand signals, promo intensity, and inventory discipline, with the longer-term outlook hinging on ongoing leverage of e-commerce growth and store optimization initiatives.