Overview

• Adjusted EPS reached 41 cents versus 18 cents expected, with revenue of $4.81 billion topping forecasts of $4.76 billion.
• Comparable sales increased 1.9% on an owned-plus-licensed basis, led by upgraded “Reimagine 125” locations and growth at Bloomingdale’s and Bluemercury.
• Guidance now calls for adjusted EPS of $1.70 to $2.05 and net sales of $21.15 billion to $21.45 billion, with full-year comparable sales still expected to be slightly negative.
• Gross margin declined 80 basis points to 39.7% due to spring markdowns and goods purchased under earlier tariff rates, with selective price increases and sourcing moves to mitigate tariff pressures.
• The company returned $100 million to shareholders and reduced debt, and the stock jumped roughly 15% to 20% following the report.