All eyes are on Macy’s as the struggling retail giant prepares to release its second-quarter financial results next week. The report arrives amid lowered expectations and dimmed forecasts, presenting a crucial moment for the company’s ongoing turnaround efforts.
The company is scheduled to announce its quarterly performance before markets open on Wednesday, September 3rd. Market experts anticipate revenue to fall within a range of $4.69 to $4.74 billion, with projected earnings of $0.19 per share. Macy’s continues to navigate a complex landscape marked by trade tariffs, cautious consumer spending, and intense retail sector competition.
In a move that signaled persistent headwinds, Macy’s management had already tempered its full-year 2025 guidance. The company revised its annual profit forecast downward to a range of $1.60 to $2.00 per share. However, its revenue outlook for the year remained steady, maintained at $21.0 to $21.4 billion.
Should investors sell immediately? Or is it worth buying Macy's?
Turnaround Strategy Under Scrutiny
The core of the company’s future hinges on its ambitious “Bold New Chapter” restructuring plan. This radical strategy involves closing 150 underperforming locations by 2026 while simultaneously modernizing and expanding 125 of its most promising stores. Early indicators from the first quarter showed some positive momentum: credit card revenue surged by an impressive 31.6% to $154 million, and the gross margin held firm at 39.2%.
Despite these glimmers of progress, market sentiment remains largely skeptical. The average analyst price target for Macy’s stock sits around $13.22, only marginally above its current trading level. Sentiment among researchers is cautious; out of twelve analysts covering the stock, nine currently advise holding, while just one recommends buying.
For income-focused investors, the recent dividend payment of $0.1824 per share provides a modest silver lining. The central question, however, is whether this can offset the deeper structural issues the retailer faces. The upcoming quarterly figures will be pivotal in determining if Macy’s can finally initiate the long-awaited recovery or if it will confirm the market’s most pessimistic fears.
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