Macy's posts strong results, raises guidance as turnaround begins to take hold
Macy's posted strong second fiscal quarter results on Thursday and raised its full-year guidance.
Macy's Reports Strong Quarterly Results, Raises Guidance as Turnaround Gains Momentum
Macy's Inc. posted robust growth across its business in the second fiscal quarter and raised its guidance, signaling that its turnaround efforts are starting to bear fruit. Overall comparable sales climbed 2.7% for the period, while the namesake Macy's brand recorded a 1.1% rise in comparable sales. The retailer said the improvement stemmed largely from its reimagined stores, a centerpiece of the ongoing transformation plan.
Sales Growth Across Brands
Bloomingdale's, the higher‑end division, posted an 11.3% jump in comparable sales, and the beauty‑focused Bluemercury saw comparable sales increase 6.2%. CEO Tony Spring told CNBC that the company now operates in a healthier state, serving shoppers while also becoming a more compelling investment for shareholders. He credited Bloomingdale's performance to innovative initiatives that keep the brand accessible yet distinct for upscale consumers.
Turnaround Efforts Paying Off
The revamped Macy's locations have benefited from richer assortments, expanded customer assistance, and stronger merchandise displays, all aimed at elevating the shopping experience. On the financial side, the retailer lifted its full‑year net‑sales outlook to a range of $21.68 billion to $21.83 billion, up from the prior $21.5 billion to $21.75 billion estimate. The comparable‑sales forecast was also nudged higher, now projected at 1% to 1.5% growth versus the earlier 0.5% to 1.2% range.
Earnings and Guidance
Macy's increased its full‑year earnings‑per‑share target to $2.15‑$2.35, up from $2.00‑$2.20. The revision incorporates an approximate five‑cent‑per‑share boost from tariff repayments. The company disclosed that it has received $116 million in tariff refunds and plans to allocate roughly $96 million toward customer‑experience enhancements and other turnaround initiatives. Spring emphasized a preference for channeling the funds into lasting improvements rather than short‑term price cuts.
Investment in Customer Experience
According to Spring, reinvesting the tariff refunds is intended to generate enduring value across all of Macy's nameplates, rather than delivering one‑off benefits. He added that a modest portion of the refunds is being held back as a hedge against fuel‑price volatility, ensuring the retailer is not caught off guard by unexpected cost pressures.
Financial Performance
Net income for the quarter rose to $169 million, or 62 cents per share, compared with $87 million, or 31 cents per share, a year earlier. Adjusted for one‑time items, earnings per share stood at 40 cents. Credit‑card revenue grew 2%, adding $3 million, driven by a healthy credit portfolio and stable net credit‑card losses. Spring noted that while income cohorts are diverging, Macy's remains well positioned to serve both higher‑ and lower‑income shoppers. The results exceeded Wall Street expectations, according to a survey of analysts compiled by LSEG.
Source: CNBC · 2026-09-10