The claim: Macy’s better-than-expected Q2 marks “the beginning of a momentum change,” CEO Tony Spring told Bloomberg, as the struggling department store finds its footing ahead of the holiday season.

The good: Comparable sales rose for the first time in over three years, with gains across all nameplates—validating the retailer’s “Bold New Chapter” turnaround strategy, which includes revamping and refreshing Macy’s stores, expanding luxury formats, and modernizing operations.

• Comparable sales at the 125 Macy’s stores that have been updated under this strategy increased 1.1% YoY on an owned basis, significantly outperforming the broader Macy’s nameplate, which posted 0.8% comp growth.
• Bloomingdale’s comparable sales rose 3.6% YoY, its fourth-consecutive quarter of growth, as higher-income consumers spent steadily. The nameplate is taking market share, executives said, with significant runway for expansion, particularly for its off-price and small-format Bloomie’s banners.

The not-so-good: Despite the improvement in comparable sales, Macy’s has not yet found the recipe for overall growth. Net sales fell for the 13th straight quarter, reflecting department stores’ diminishing appeal to consumers.

• Sales at department stores fell 2.7% YoY in the first seven months of 2025, per the US Commerce Department.
• While department stores had some momentum in July with sales increasing 0.9% MoM, on a YoY basis sales were down 0.8%.
• The sector could take a bigger hit as tariff-related price increases filter through to consumers and more shoppers trade down to off-price retailers.

Our take: Macy’s is in a better position than most of its department store peers, thanks to its investments in the customer experience and its luxury banners. However, recovery could prove fleeting should consumer sentiment worsen and shoppers balk at higher prices. To keep its momentum going, Macy’s will need to continue investing in the customer experience and look for ways to differentiate its luxury banners.