Macy's Q2 2026 Earnings Strengthen Outlook
Macy's Q2 2026 earnings raised guidance after 2.7% comparable sales and a $0.23 per-share tariff refund that aided margins and trader positioning.
KEY TAKEAWAYS
- Comparable sales rose 2.7% across all nameplates, led by Bloomingdale's double-digit gains.
- A $0.23 per-share tariff refund materially boosted Q2 EPS and expanded gross margin.
- Management raised net-sales guidance to about $21.7-$21.8 billion and adjusted EPS to $2.15-$2.35.
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Macy’s, Inc. (M) raised its full-year sales and adjusted earnings guidance after reporting second-quarter fiscal 2026 results on Sept. 10. The company posted a 2.7% increase in comparable sales across all nameplates, supported by a tariff refund that boosted margins.
Quarter Results and Tariff Impact
Macy’s reported net sales rose about 1.1% to roughly $4.9 billion in the quarter, with comparable sales growth of 2.7%. By brand, Macy’s comparable sales increased 1.1%, Reimagine 200 stores rose 1.9%, Bloomingdale’s surged 11.3%—its highest second-quarter sales volume ever—and Bluemercury grew 6.2%.
GAAP net income doubled to about $169 million, producing GAAP diluted earnings per share (EPS) of $0.62. Adjusted diluted EPS was $0.63, while an operational adjusted EPS excluding the tariff benefit was $0.40. The company said a net tariff refund contributed about $0.23 per share to EPS, with refund proceeds totaling $98 million during the quarter and an additional $18 million after quarter-end.
Gross margin expanded 180 basis points year over year to 41.5%, including the tariff benefit. Excluding tariff-related items, organic gross margin improved by 10 basis points. The company said, “Macy’s, Inc. delivered 2.7% comparable sales growth, exceeded its expectations across all key metrics and raised its full-year top- and bottom-line guidance.”
Guidance and Strategic Momentum
A Form 8-K filed on Sept. 10 showed Macy’s raised its full-year fiscal 2026 net sales guidance to about $21.7–$21.8 billion and adjusted diluted EPS guidance to $2.15–$2.35. The full-year comparable sales growth range was lifted to roughly 1.0–1.5%. The new EPS guidance includes about $0.05 per share from tariff repayments applied to the bottom line. This marks the company’s second guidance increase for 2026.
On the earnings webcast, management framed the results and guidance update as evidence the turnaround is gaining traction. They cited the Reimagine 200 store program, Bloomingdale’s luxury assortment, and Bluemercury’s beauty offerings as key drivers of comparable sales growth. During the quarter, Macy’s repurchased about 2.2 million shares for roughly $50 million and returned about $51 million in dividends. Commentary around the release noted macro headwinds such as fuel costs and higher interest rates.
