Macy’s, Inc. raised its earnings and sales guidance for the year after reporting second-quarter results that arrived well above guidance. Adjusted earnings rose 73.5 percent year over year. Same-store sales grew 2.7 percent, with gains of 1.1 percent at the flagship Macy’s banner, 11.3 percent at Bloomingdale’s, and 6.2 percent at Bluemercury.

Adjusted EPS, excluding the benefit of tariff refunds, in the second quarter totaled 63 cents a share, compared to company guidance in the range of 29 cents to 34 cents and analysts’ consensus estimate of 35 cents. Sales reached $4.9 billion, topping guidance in the range of $4.75 billion to $4.8 billion and analysts’ consensus estimate of $4.78 billion.

“Our second-quarter performance builds on the progress our colleagues have consistently delivered through our Bold New Chapter strategy,” said Tony Spring, chairman and chief executive officer of Macy’s, Inc. “The investments we’re making are driving results across our portfolio, from the continued outperformance of our Reimagine 200 Macy’s stores, to meaningful double-digit growth at Bloomingdale’s and another solid quarter at Bluemercury. As we enter the second half of the year, we remain focused on scaling what is resonating most with customers – exciting brands and assortments and compelling events and experiences. Combined with disciplined execution, we expect these efforts to continue to build a durable foundation for sustainable, profitable growth.”

Second Quarter 2026 Results (comparisons are to the second quarter of 2025)
Macy’s, Inc. net sales increased 1.1 percent to $4.9 billion. Net sales grew 1.9 percent excluding the impact of fiscal 2025 store closures. Macy’s, Inc. comparable sales rose 2.7 percent and percent were positive at each of the company’s nameplates.

Macy’s, Inc. go-forward business comparable sales increased 2.8 percent. By nameplate:

  • Macy’s comparable sales grew 1.1 percent.
    • Reimagine 200 locations comparable sales rose 1.9 percent.
  • Bloomingdale’s comparable sales grew 11.3 percent.
  • Bluemercury comparable sales increased 6.2 percent.

Other revenue of $193 million increased $6 million, or 3.2 percent. Within other revenue:

  • Credit card net revenues increased $3 million, or 2.0 percent, to $156 million, supported by the company’s healthy credit portfolio and stable net credit card losses.
  • Macy’s Media Network net revenue increased $3 million, or 8.8 percent, to $37 million, reflecting partner engagement on the company’s advertising platform.

Gross margin rate of 41.5 percent increased 180 basis points. Excluding a 180 basis point benefit from net tariff refunds, partially offset by a 10 basis point headwind from ongoing tariff and fuel costs, gross margin rate was up 10 basis points.

Selling, general and administrative (SG&A) expense as a percent of total revenue decreased 20 basis points to 38.7 percent. SG&A expense of $1.96 billion increased $16 million, reflecting higher variable costs driven by net sales growth as well as the company’s investments in Bold New Chapter initiatives, partially offset by continued cost management efforts.

GAAP net income was $169 million, or 3.3 percent of total revenue, and adjusted net income was $170 million, or 3.4 percent of total revenue. In the second quarter of 2025, net income was $87 million, or 1.7 percent of total revenue, and adjusted net income was $98 million, or 2.0 percent of total revenue.

GAAP and adjusted diluted EPS were 62 cents and 63 cents, respectively. These include a gross tariff refund benefit, less investments back into the business, resulting in a net tariff refund benefit of 23 cents in the quarter. In the second quarter of 2025, GAAP and adjusted diluted EPS were 31 cents and 35 cents, respectively.

Adjusted earnings before interest, taxes, and depreciation and amortization (EBITDA) was $457 million, or 9.0 percent of total revenue. In the second quarter of 2025, adjusted EBITDA was $373 million, or 7.5 percent of total revenue.

Balance Sheet and Liquidity
Merchandise inventories increased 2.5 percent year-over-year. The company believes the composition and level of inventories are well-positioned heading into the second half of 2026.

The company ended the second quarter of 2026 with cash and cash equivalents of $1.3 billion versus $0.8 billion last year and had $2.0 billion of available borrowing capacity under its asset-based credit facility.

As of the end of the second quarter of 2026, total debt was $2.4 billion. The company has no material long-term debt maturities until 2030.

Tariff Refunds and Investments
Macy’s, Inc. has received all expected International Emergency Economic Powers Act (“IEEPA”) tariff refunds, including $98 million in the second quarter of 2026 and $18 million after quarter-end, for a total of $116 million. The company is taking a balanced approach to deploying benefits. Approximately $20 million of proceeds will flow to full-year EPS. The remaining refunds of $96 million are being invested in 2026 “to deliver for our customer, further the Bold New Chapter strategy and support long-term growth.”

Shareholder Returns
Through its quarterly dividend, the company returned $51 million in cash to shareholders in the second quarter of 2026 and $101 million in the first half of 2026. Additionally, on August 28, 2026, Macy’s, Inc.’s board of directors declared a regular quarterly dividend of 19.15 cents per share on Macy’s, Inc.’s common stock, payable on October 1, 2026 to shareholders of record at the close of business on September 15, 2026.

During the second quarter of 2026, the company repurchased 2.2 million of its shares for $50 million, bringing total repurchases in the first half of 2026 to 4.9 million shares for $100 million. The company had approximately $1.0 billion remaining under its $2.0 billion share repurchase authorization as of the end of the second quarter of 2026.

2026 Guidance
The company raised its annual fiscal year 2026 guidance, including net sales, comparable sales, adjusted EBITDA and adjusted diluted EPS guidance. Full year guidance continues to recognize that there are macroeconomic and geopolitical factors that could influence discretionary spend. As such, the company continues to take a prudent approach to guidance, providing flexibility to respond to changes in the competitive landscape and external environment.

Forward-looking guidance incorporates reinvestments of the majority of tariff refunds with approximately 5 cents per share flowing through to full year adjusted diluted EPS. Tariff refunds net of reinvestment benefited adjusted diluted EPS by 23 cents in the second quarter with approximately 18 cents per share of reinvestment in the second half incorporated in guidance. Additionally, guidance reflects planned investments in the company’s Reimagine 200 locations and luxury nameplates to support long-term top-line growth.

For Macy’s, Inc. the company expects:

 

 

 

 

 

 

 

 

Image, data and tables courtesy Macy’s, Inc.