Macy's (M) Earnings Date & Reports

Key Takeaways

• Macy's, Inc. reported adjusted earnings per share (EPS) of $0.63 for the second quarter of fiscal 2026, up from $0.35 a year earlier and well above the roughly $0.35–$0.37 consensus estimate.
• Net sales rose 1.1% to $4.87 billion, while comparable sales climbed 2.7% — the company's fifth consecutive quarter of comparable sales growth.
• Luxury nameplates led the way, with Bloomingdale's comparable sales up 11.3% and Bluemercury up 6.2%, while the Macy's nameplate grew 1.1%.
• Results included an approximately $0.23 per-share net benefit from tariff refunds; excluding it, adjusted EPS was still up 14% year over year.
• Macy's raised its full-year adjusted EPS outlook to $2.15–$2.35, but shares fell roughly 3% in early trading as full-year revenue guidance came in slightly below expectations.

Earnings Context and Why It Matters

Macy's second-quarter fiscal 2026 results matter because they offer a progress report on the company's "Bold New Chapter" turnaround strategy. The department-store operator has been closing underperforming locations, investing in its "Reimagine" store program, and leaning on higher-growth banners like Bloomingdale's and Bluemercury. A fifth straight quarter of comparable sales growth suggests those efforts are gaining traction at a time when the broader department-store sector faces persistent traffic and margin pressure. For investors, the report is also a key test of whether improvements are genuine operational gains or partly the result of one-time items, given the tariff refunds recorded during the period.

Reported Results

For the 13 weeks ended August 1, 2026, Macy's reported net sales of $4.87 billion, up 1.1% from $4.81 billion a year earlier. Total revenue rose 1.2% to roughly $5.06 billion. Comparable sales increased 2.7% on a reported basis and 2.8% on a go-forward basis, excluding closed stores. Bloomingdale's delivered its best second-quarter sales volume in its 154-year history, with comparable sales up 11.3%, while Bluemercury grew 6.2% and the Macy's nameplate rose 1.1%.

Adjusted EPS came in at $0.63, up from $0.35 in the prior-year period and ahead of consensus. Gross margin expanded to 41.5% of net sales from 39.7% a year ago. Adjusted EBITDA (earnings before interest, taxes, depreciation, and amortization) rose to $457 million, or 9.0% of total revenue, from $373 million a year earlier. Importantly, the quarter included a roughly $0.23 net benefit from tariff refunds received under the International Emergency Economic Powers Act; excluding that benefit, adjusted EPS was still 14% higher than the prior year and above the high end of guidance.

Macy's raised its full-year outlook, now projecting net sales of $21.675 billion to $21.825 billion, comparable sales growth of 1.0% to 1.5%, and adjusted EPS of $2.15 to $2.35. For the third quarter, however, it guided to net sales of $4.65 billion to $4.70 billion, comparable sales between -0.5% and +0.5%, and an adjusted diluted EPS loss of $0.19 to $0.23.

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Market Reaction and Investor Sentiment

Despite a headline earnings beat, Macy's shares declined about 3% in early trading following the release. Investors appeared to focus on the quality and durability of the results, noting that a meaningful portion of the profit improvement came from tariff refunds rather than core operations. The company's full-year revenue guidance midpoint of roughly $21.76 billion also came in slightly below the consensus estimate near $21.82 billion, while third-quarter guidance implied a slowdown in comparable sales. Sentiment reflects a balancing act: the turnaround is clearly progressing, but the market is weighing how much of the current momentum depends on one-time items and whether second-half demand can sustain the recent pace.

Forward Outlook and Key Factors to Monitor

Looking ahead, investors will want to monitor whether Macy's can sustain comparable sales growth without the support of tariff refunds. The third-quarter guidance for comparable sales ranging from -0.5% to +0.5% signals a meaningful step down from the second quarter's 2.7% gain, so the direction of the holiday shopping season and fourth-quarter performance will be closely watched.

The company's "Reimagine" store program remains a central driver. Those locations now represent nearly 60% of go-forward Macy's stores and 75% of go-forward store sales, and the company has signaled plans to pilot additional initiatives late this year ahead of a potential broader expansion in 2027. Continued outperformance at Bloomingdale's and Bluemercury will also be important, given their outsized contributions to recent growth.

On the cost side, the company cited supply-chain efficiencies and additional savings expected in the second half, while tariff and fuel impacts remain a factor in its margin outlook. Inventory management, credit-card portfolio health, and the performance of new AI-powered tools such as the "Ask Macy's" shopping assistant are additional areas worth tracking as the company works to convert operational improvements into durable, sustainable profitability.

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