Key Takeaways
- The department store chain delivered adjusted earnings of 63 cents per share for Q2, significantly surpassing the Street’s 37-cent projection
- Revenue climbed 1.1% to reach $4.87 billion, topping analyst predictions of $4.81 billion
- Management elevated full-year projections for a second consecutive time, now anticipating adjusted EPS between $2.15 and $2.35
- The retailer collected $98 million in tariff reimbursements during the period, contributing 23 cents per share to results
- Shares slid 4.7% to $20.50 in early trading, dropping beneath the 200-day moving average
Macy’s shares tumbled 4.7% to $20.50 during Thursday’s premarket session on September 10, even as the department store operator delivered impressive second-quarter results and elevated its annual forecast for the second occasion in 2026.
The company announced adjusted profits of 63 cents per share for its fiscal second quarter that concluded on August 1. This figure substantially exceeded Wall Street analysts’ 37-cent estimate. During the same period last year, adjusted earnings per share stood at 35 cents.
Total revenue reached $4.87 billion, representing a 1.1% year-over-year increase and surpassing the $4.81 billion analyst consensus estimate.
Comparable store sales throughout the entire Macy’s portfolio increased 2.7%. Wall Street had projected just 1% expansion. However, this growth rate represented a modest deceleration from the 3% increase recorded during the first quarter.
The Bloomingdale’s division delivered exceptional performance. Comparable sales at this upscale brand surged 11.3%, with total sales reaching the highest second-quarter level in Bloomingdale’s entire operating history. Meanwhile, Bluemercury registered 6.2% growth, and the flagship Macy’s store locations posted a 1.1% gain.
The company’s credit card operations also performed well, with net revenue advancing 2% to $156 million during the three-month period.
Tariff Reimbursements Provided Financial Lift
Macy’s recognized a 23-cent-per-share benefit from tariff refunds this quarter, consisting of $98 million received during the reporting period plus an additional $18 million that arrived after quarter-end.
Approximately $20 million of these funds will contribute to full-year earnings per share. The company plans to reinvest the remaining $96 million into its comprehensive multi-year transformation initiative.
Chief Executive Tony Spring stated the organization continues prioritizing “scaling what is resonating most with customers” while establishing a “durable foundation for sustainable, profitable growth.”
Annual Forecast Elevated Again
Following the encouraging quarterly performance, Macy’s upgraded its full-year projections. Management now anticipates adjusted earnings per share ranging from $2.15 to $2.35, an increase from the previous $2.00 to $2.20 range.
Annual revenue expectations were revised upward to $21.68 billion to $21.83 billion, compared with the earlier forecast of $21.5 billion to $21.75 billion.
Full-year comparable sales growth is now projected at 1% to 1.5%, up from the prior 0.5% to 1.2% outlook.
The midpoint of these updated projections slightly exceeded Wall Street’s consensus estimates for both adjusted profitability and revenue.
The stock had already declined 4.2% during the previous trading session, closing beneath its 200-day moving average around the $21.60 mark for the first time since May 19.
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