Macy’s reported financial results on Thursday that reflected progress across its retail operations. The company achieved overall comparable sales growth of 2.7% for the fiscal second quarter, with its Bloomingdale’s higher-end division posting particularly strong performance at 11.3% comparable sales increase. The Bluemercury beauty brand also contributed with 6.2% growth, while the Macy’s nameplate saw a more modest 1.1% increase, attributed largely to newly reimagined store locations that form a centerpiece of the company’s ongoing turnaround efforts.
In response to the quarterly performance, Macy’s elevated its financial projections for the full year. The company raised its net sales guidance to a range of $21.68 billion to $21.83 billion, up from the prior range of $21.5 billion to $21.75 billion. Comparable sales outlook was also increased to between 1% and 1.5% growth from the previous range of 0.5% to 1.2%. Full-year earnings per share guidance was raised to $2.15 to $2.35, compared with the earlier range of $2 to $2.20, with approximately 5 cents per share attributed to tariff repayment benefits.
The company reported net income of $169 million, or 62 cents per share, compared with $87 million, or 31 cents per share in the prior year period. On an adjusted basis, earnings per share reached 40 cents. Sales totaled approximately $4.87 billion, compared with $4.81 billion in the year-earlier quarter. Credit card revenue increased 2%, reflecting a healthy portfolio and stable net credit card losses.
Macy’s indicated it would deploy a substantial portion of its $116 million in tariff refunds toward long-term improvements rather than temporary promotional pricing. CEO Tony Spring stated the company planned to invest roughly $96 million of the refunds into customer experience enhancements and turnaround initiatives, while reserving a portion due to fuel cost uncertainty. Despite the positive quarterly results and raised guidance, Macy’s shares declined nearly 5% on Thursday.
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