Macy’s reported growth across its business in its fiscal second quarter and raised its full-year guidance, extending the department store chain’s multiyear turnaround effort. Even so, the stock fell nearly 5% on Thursday.
Overall comparable sales rose 2.7% for the quarter, the company said, with the namesake Macy’s brand up 1.1%. Much of that growth came from the chain’s “reimagined” locations — stores it has overhauled as a centerpiece of the turnaround plan.
The higher-end Bloomingdale’s chain posted an 11.3% jump in comparable sales, while beauty brand Bluemercury rose 6.2%, according to CNBC.
A ‘Different Macy’s Inc.’
“I think it’s a different Macy’s Inc. today,” CEO Tony Spring told CNBC. “We’re in a healthier position. We’re catering to our customers while we’re also becoming a more interesting investment option for our shareholders.”
Spring said Bloomingdale’s has thrived by “doing innovative things” to stay accessible and differentiated for affluent shoppers. At the revamped Macy’s stores, he pointed to better merchandise assortments, more customer assistance, and stronger displays as factors improving the shopping experience.
Guidance Gets a Lift
Macy’s now expects full-year net sales of $21.68 billion to $21.83 billion, up from a prior range of $21.5 billion to $21.75 billion. The company also lifted its comparable sales outlook to growth of 1% to 1.5%, from a previous range of 0.5% to 1.2%.
Full-year earnings per share guidance moved to $2.15 to $2.35, from $2 to $2.20. That includes roughly a 5-cent per-share boost from tariff repayments the company will apply to its bottom line.
Macy’s said it has received $116 million in tariff refunds in total and will put most of that — about $96 million — toward customer experience and its turnaround plan. Spring said the company would rather fund long-term improvements than temporary price cuts, a route some retailers have taken to appeal to budget-conscious shoppers.
“There is great value being offered across all of our nameplates, and we just really wanted to make sure that the reinvestment of the tariff refunds were things that were beyond one-time benefits that really had lasting power to support the overarching intent of our strategy,” Spring told CNBC.
He added that Macy’s is holding back a small slice of the refunds given uncertainty around fuel costs, so the company is “not surprised by anything else.”
Quarterly Results
For the fiscal second quarter, Macy’s reported net income of $169 million, or 62 cents per share, compared with $87 million, or 31 cents per share, a year earlier. Adjusted earnings per share came in at 40 cents.
Sales totaled roughly $4.87 billion, barely above the $4.81 billion reported a year prior. Credit card revenue increased 2%, or $3 million, which the company attributed to a “healthy credit portfolio and stable net credit card losses.”
Spring acknowledged a split among income groups but argued the retailer is positioned to serve both higher- and lower-income customers.
“For the people that have the discretionary income, they’re wanting to participate and enjoy the benefits of fashion and its accessibility to everyone to really create your own style,” he said. “At the same time, people that are navigating month-to-month or quarter-to-quarter based on interest rates or the price of food or the price of gas, they’re going to be leveraging more value and off-price in order to participate in the economy.”
Macy’s is approaching the final stretch of a three-year turnaround plan under Spring aimed at reigniting growth and investing in its best-performing locations, all against a difficult backdrop for department stores. Spring told CNBC last quarter that consumer behavior remained strong despite a challenging macroenvironment.
Source: www.cnbc.com — https://www.cnbc.com/2026/09/10/macys-m-q2-2026-earnings.html
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