Macy’s profit and sales decreased in Q2 due to cautious consumer spending and higher costs from Trump’s tariffs. However, they exceeded Wall Street expectations, posting the best comparable store sales in three years. They are diversifying product origins and reported net income of $87 million, with adjusted earnings of 41 cents per share.

Macy’s remains cautious for the year amidst economic uncertainty and tariff impacts. About 20% of products came from China last fiscal year. Sales fell to $4.99 billion, but comparable sales rose 1.9%. The retailer’s modernization efforts are paying off, with revamped stores achieving 1.4% comparable sales growth.

For the year, Macy’s raised its earnings per share forecast to $1.70-$2.05 and sales forecast to $21.15-$21.45 billion in 2025. Wall Street projects per-share earnings of $1.79 on sales of $21.18 billion. Macy’s efforts to improve customer service and product offerings are reflected in their strong financial performance.

Read more at Yahoo Finance: Macy’s quarterly profit and sales fall but it raises guidance with declines limited