Macy’s announced fiscal second-quarter results on Thursday showing growth across its portfolio and raising outlook for the remainder of the year. The company reported overall comparable sales increased 2.7%, with its namesake Macy’s brand comparable sales up 1.1%. The higher-end Bloomingdale’s division posted stronger performance with an 11.3% comparable sales increase, while beauty brand Bluemercury rose 6.2%.
The retailer attributed much of its growth to reimagined store locations that have undergone revamping as part of its broader turnaround initiative. Chief Executive Tony Spring characterized the company as being in a healthier position, noting that Bloomingdale’s had achieved success through innovative merchandising and differentiation for affluent consumers, while the revamped Macy’s locations featured improved assortments, enhanced customer service, and better product displays.
Macy’s raised its full-year net sales guidance to a range of $21.68 billion to $21.83 billion from a prior range of $21.5 billion to $21.75 billion. The company also elevated its comparable sales outlook to 1% to 1.5% growth from 0.5% to 1.2%, and increased full-year earnings per share guidance to $2.15 to $2.35 from $2 to $2.20, including approximately 5 cents per share from tariff refunds.
The company disclosed it received $116 million in total tariff refunds and planned to invest approximately $96 million of that amount into customer experience improvements and its turnaround strategy rather than temporary price reductions. Spring indicated the company was reserving a portion of the refunds due to fuel cost uncertainty. For the second quarter, Macy’s 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. Sales reached approximately $4.87 billion, slightly up from $4.81 billion the previous year.
Despite the positive results and guidance increase, Macy’s shares declined nearly 5% on Thursday. Spring noted the company was positioned to serve both higher and lower-income consumer segments, observing a bifurcation among income cohorts while maintaining strength in its credit card operations.
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