Macy’s Lifts Full-Year Sales and Earnings Outlook
The retailer raised 2026 comparable-sales guidance to 1.0%–1.5% after a fifth straight quarter of gains.
Macy’s, Inc. (M) raised its fiscal 2026 outlook on net sales, comparable sales, adjusted EBITDA and adjusted diluted earnings after comparable sales rose 2.7% in the second quarter, a fifth consecutive quarterly gain.
The department-store operator now expects full-year net sales of $21.675 billion to $21.825 billion, versus a prior range of $21.5 billion to $21.75 billion. Comparable sales are now seen at 1.0% to 1.5%, up from 0.5% to 1.2%. Adjusted EBITDA as a percent of total revenue is guided to 7.8% to 8.0%, from 7.7% to 7.9%, and adjusted diluted EPS to $2.15 to $2.35, from $2.00 to $2.20. The company said the update still recognizes macroeconomic and geopolitical factors that could influence discretionary spending.
Comparable sales growth slowed from 3.0% in the first quarter after 1.8% in the fourth quarter of 2025, but the streak of positive quarters continued. Net sales were $4.9 billion, up 1.1% versus a year earlier and 1.9% excluding fiscal 2025 store closures. Go-forward comparable sales rose 2.8%.
Bloomingdale’s was the standout. Comparable sales increased 11.3%, after 10.2% in the first quarter and 9.9% in the fourth quarter, and the brand posted its highest second-quarter sales volume in its history. Bluemercury comparable sales rose 6.2%. The Macy’s nameplate increased 1.1%, with Reimagine 200 stores up 1.9%. Chairman and Chief Executive Officer Tony Spring said the quarter built on progress under the Bold New Chapter strategy, citing Reimagine 200 outperformance, double-digit growth at Bloomingdale’s and another solid quarter at Bluemercury.
Gross margin rate was 41.5%, including a 180-basis-point net tariff refund benefit. Excluding that benefit and a 10-basis-point headwind from ongoing tariff and fuel costs, the rate was up 10 basis points. SG&A expense as a percent of total revenue decreased 20 basis points to 38.7%. SG&A expense of $1.96 billion increased $16 million, which the company attributed to higher variable costs from net sales growth and Bold New Chapter investments, partially offset by cost management.
GAAP diluted EPS was $0.62, up 100% from a year earlier. Adjusted diluted EPS was $0.63, up 14% versus last year excluding a $0.23 net tariff refund benefit. Adjusted EBITDA was $457 million, or 9.0% of total revenue, versus $373 million, or 7.5% of total revenue, a year earlier.
Macy’s received all expected IEEPA tariff refunds, including $98 million in the second quarter and $18 million after quarter-end, for a total of $116 million. The company said about $20 million of proceeds will flow to full-year EPS. The remaining $96 million is being invested in 2026 to support customers, the Bold New Chapter strategy and long-term growth. Forward-looking guidance incorporates reinvestment of the majority of those refunds, with about $0.05 a share flowing through to full-year adjusted diluted EPS. Tariff refunds net of reinvestment benefited adjusted diluted EPS by $0.23 in the second quarter, with about $0.18 a share of second-half reinvestment incorporated in guidance. The outlook also reflects planned investments in Reimagine 200 locations and luxury nameplates.
Cash and cash equivalents were $1.3 billion versus $0.8 billion a year earlier. Available borrowing capacity under the asset-based credit facility was $2.0 billion. Total debt was $2.4 billion, with no material long-term maturities until 2030. Merchandise inventories increased 2.5% year-over-year. The company said the composition and level of inventories are well-positioned heading into the second half of 2026.
The company repurchased 2.2 million shares for $50 million in the second quarter and had about $1.0 billion remaining under its $2.0 billion authorization. It returned $51 million in cash dividends in the quarter. On August 28, the board declared a regular quarterly dividend of 19.15 cents a share, payable October 1.
Spring said the company remains focused on scaling brands, assortments, events and experiences that resonate with customers, combined with disciplined execution, and expects those efforts to continue to build a durable foundation for sustainable, profitable growth.