Is Macy's Turnaround for Real? | Fast Five Shorts

Macy's posted its fifth straight quarter of comparable sales growth and raised its full year guidance.

As CEO Tony Spring says the retailer is now, quote, a different Macy's, which is operating from a healthier position.

According to CNBC, Macy's fiscal second quarter comparable sales rose 2.7% company wide, well ahead of Wall Street's estimate of roughly 0.8% growth.

Growth was driven in large part by Macy's quote, reimagined stores and the revamped locations central to its turnaround strategy.

While Bloomingdale's comparable sales jumped 11.3% and beauty chain Blue Mercury rose 6.2%.

Josh.

Oh man, I have no idea what you're gonna say to me on this one.

Is it time to plant the victory flag at Macy's and bow down in homage to Tony Spring or do you think there's still more work to do?

I don't think there, it's time for victory parade yet.

I think the, I think the flag is within reach or they can see the right.

So maybe over the river and through the woods they see a flag over there, but it's probably still packed away.

I think Tony Spring, he deserves credit for creating momentum obviously and putting the customer back at the center of Macy's strategy, which I think is really important.

But one of the things I read, you know, they're, they're remodeling a lot of stores and closing some of the underperforming stores, which, it's kind of a short term know, focus and strategy, but that comes at a high price.

And what, what I believe I read was that a lot of those investments are being made from the tariff refunds that they received.

Right.

So they received 90.

I think they're investing 90 plus million dollars out of those tariff refunds, which feels like a little bit of a, a one time benefit versus like this long term operational strategy and brand improvement strategy.

So yeah, I mean I think ultimately they're going to have to ask the, or answer the question which is what is the compelling reason to choose Macy's over their competitors?

And so in retail, as you know better than anybody, right, one strong quarter or a strong year even doesn't erase like years of challenges.

And so I think, right, you know, the real test is is can, you know, can Macy's turn it into kind of sustained, profitable growth across the entire fleet?

And one of the things I noticed too was I know like Bloomingdale's and, and Blue Mercury, right.

Really, really strong quarters and really strong performance.

But I don't think the core Macy's stores have been nearly as strong.

And so I think if, if, if they want to have long term success, I think they have to figure out the core Macy's brand and really drive that.

I think I fundamentally agree with you on this point.

You know, I think like, you know, I think number one, and I've been harder on Macy's than anybody, Josh.

Like you know, pretty, pretty pointed at times, quite frankly.

And I got to give credit where credit is due.

I mean five, five straight quarters of comp growth is saying something because you're actually anniversary yourself.

I mean you've been in retail a long time and that, that is the tell point when you're like, okay, you know, you're doing something at least better than you were doing before.

It shows how good your good is when you can comp your comp, so to speak.

So it's definitely nothing to sneeze at.

Um, but Josh, to your point, and I don't know when the last time you were in Macy's was, but I went in there this past weekend and.

Cause I was kind of like, okay, you know, what's in the water?

Like, should I be drinking this Kool Aid?

You know, like.

And I went in there and I was kind of like, I don't get it.

Like, I left confused.

I was uninspired.

I wanted to buy stuff and I didn't get, you know, hooked to buy anything.

So I don't know, I just.

In general, there's still some skepticism from me in terms of how much the dissolution of other competitors is still having on the numbers, particularly in the department store space.

But with that said, the one caveat I would make to my argument is I think Tony Spring likely gets that.

He understands the rub, so to speak, and is following his plan very methodically.

And the great news is that the wound, you know, to put it in my terms, the wound has been cauterized and at least the bleeding has stopped.

Which is saying something that I, I for one, and I'll, I'll call it like it is, I never thought that we were going to see that even.

And so that is a remarkable achievement in and of itself, especially as you look back at the history of my commentary on this show.

So that's my take, Josh.

And.

But you know, you know, maybe, hopefully, you know, for the sake of Macy's, they can all prove us wrong.

Yeah, yeah, I was, I've been a Macy shopper.

I've had a Macy's credit card before in the past, but every time I'VE had it multiple times, and then I've closed the credit card and I'm like, I'm just not coming back.

You know what I mean?

And so, like you said, there's no, like, differentiation that I've experienced.

Now, to be fair, I haven't been there in probably the last year, but I would have to experience something new next time I go to a Macy's or I Visit, you know, Macy's.com to be like, oh, you know what, they've changed.

Right?

You gotta.

You gotta.

You wanna feel something palpably different.

Yeah, I wasn't seeing that.

Now the question becomes, like, you know, do you, for good retailing, do you to see something probably different, or do you just need to.

Palpably different, if that's what I'm trying to say, or do you just need to be, like, better at what you do every single day?

And that's probably where the jury is still out.

I don't think either one of us know the answer to that question yet, do we, Josh?

I don't think so.

Yeah.

All right, well.

All right, well, kudos to Tony Spring, though, for doing a heck of a job for the first five quarters or the last five quarters of his tenure.