According to Just Style, Macy’s reported second-quarter net income of $169m, nearly double the $87m recorded in the same period last year, driving an upward revision of its full-year financial outlook.
Record Q2 performance across brands
For the 13 weeks ended 1 August 2026, Macy’s net sales rose 1.1% year-on-year to $4.9bn. Comparable sales increased across all Macy’s brands, with Bloomingdale’s — the company’s luxury department store chain — delivering the strongest growth at 11.3% in comparable sales, marking its highest second-quarter sales volume in the brand’s history.
Bloomingdale’s outperformance contributed meaningfully to overall margin expansion: gross margin rate improved to 41.5%, up 180 basis points year-on-year. This gain was partly attributed to tariff refunds, which boosted the gross margin and supported broader profitability metrics.
Selling, general and administrative (SG&A) expenses represented 38.7% of revenue — a 20-basis-point decrease from the prior year — despite absolute SG&A costs rising by $16m due to higher sales volume and ongoing strategic investments.
Tariff refunds fuel earnings and strategy reinvestment
Tariff refunds under the International Emergency Economic Powers Act (IEEPA) contributed $0.23 per share to adjusted diluted earnings in Q2. Macy’s confirmed receipt of the full expected refund totaling $116m: $98m within the quarter and an additional $18m after quarter-end.
The company plans to reinvest the majority of the $116m, allocating approximately $20m to full-year earnings and directing the remainder toward its “Bold New Chapter” strategic initiatives.
Adjusted diluted earnings per share rose to $0.63, up from $0.35 in Q2 2025. Net income represented 3.3% of total revenue, compared with 1.7% a year earlier.
Revised full-year guidance and forward focus
Macy’s raised its full-year net sales forecast to between $21.68bn and $21.83bn, up from the prior range of $21.5bn to $21.75bn. Comparable sales are now expected to increase 1.0% to 1.5%, versus the earlier projection of 0.5% to 1.2%.
Adjusted EBITDA margin is projected at 7.8% to 8.0%, and full-year adjusted diluted EPS is estimated between $2.15 and $2.35, up from the prior range of $2.00 to $2.20.
“Our second-quarter performance builds on the progress our colleagues have consistently delivered through our Bold New Chapter strategy. 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.” — Tony Spring, chairman and CEO
Source: Just Style
Compiled from international media by the SCI.AI editorial team.
