Key Takeaways
- Macy’s delivered adjusted earnings of 63 cents per share in Q2, significantly exceeding the Street’s 37-cent estimate
- Revenue climbed 1.1% year-over-year to $4.87 billion, surpassing the $4.81 billion analyst projection
- The company increased its annual forecast for the second consecutive time, now projecting adjusted EPS between $2.15 and $2.35
- Tariff reimbursements totaling $98 million provided a 23-cent per share boost to quarterly results
- Shares declined 4.7% to $20.50 in early trading, dipping beneath the 200-day moving average
Despite delivering impressive second-quarter results and elevating its annual projections for the second time in 2026, Macy’s saw its shares decline 4.7% to $20.50 during Thursday morning’s premarket session on September 10.
The department store chain announced adjusted quarterly earnings of 63 cents per share for its fiscal second quarter that concluded on August 1. This figure substantially exceeded Wall Street’s consensus estimate of 37 cents and represented a notable improvement from the 35-cent adjusted EPS recorded in the same period last year.
Total net sales reached $4.87 billion, marking a 1.1% increase from the prior year and topping the analyst consensus forecast of $4.81 billion.
Comparable store sales across the entire Macy’s portfolio increased 2.7%, outperforming analyst expectations of just 1% growth. However, this represented a slight deceleration from the 3% comparable sales growth achieved in the first quarter.
Bloomingdale’s emerged as the clear performance leader. The upscale brand posted comparable sales growth of 11.3%, achieving its strongest second-quarter sales volume in the brand’s entire history. Bluemercury contributed with 6.2% growth, while the flagship Macy’s stores registered a 1.1% increase.
The company’s credit card operations also showed improvement, with net revenue from this segment increasing 2% to reach $156 million during the quarter.
Tariff Reimbursements Provide Windfall
Macy’s recognized a significant tariff refund benefit of 23 cents per share this quarter, consisting of $98 million in refunds collected during the reporting period plus an additional $18 million received after the quarter’s conclusion.
Approximately $20 million of these refund proceeds will contribute directly to full-year earnings per share. The company plans to reinvest the remaining $96 million into its comprehensive multi-year transformation initiatives.
CEO Tony Spring emphasized the company’s continued commitment to “scaling what is resonating most with customers” while establishing a “durable foundation for sustainable, profitable growth.”
Full-Year Outlook Receives Another Upgrade
Building on the quarter’s positive momentum, Macy’s elevated its full-year financial outlook. The retailer now anticipates adjusted earnings per share in the range of $2.15 to $2.35, representing an increase from its previous guidance of $2.00 to $2.20.
The company’s full-year net sales projection was also raised to a range of $21.68 billion to $21.83 billion, up from the earlier forecast of $21.5 billion to $21.75 billion.
Full-year comparable sales are now expected to increase between 1% and 1.5%, an improvement over the previous estimate of 0.5% to 1.2% growth.
The midpoint of Macy’s updated guidance slightly exceeded Wall Street’s consensus projections for both adjusted earnings and total sales.
The stock had already experienced a 4.2% decline in the previous trading session and dropped below its 200-day moving average around the $21.60 mark for the first time since May 19.
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