Macy’s delivered stronger-than-anticipated results in its second fiscal quarter, posting comparable sales growth of 2.7% across the company and announcing raised guidance for the remainder of the year. The comparable sales figure for the nameplate Macy’s brand increased 1.1%, with growth concentrated in reimagined store locations that are central to the company’s ongoing turnaround strategy.
The company’s premium divisions delivered notably strong performance. Bloomingdale’s posted comparable sales growth of 11.3%, while Bluemercury, the beauty brand, saw comparable sales rise 6.2%. Chief Executive Tony Spring highlighted the consistency of the turnaround efforts, noting that the company has now achieved six consecutive quarters of better-than-expected top and bottom line results, five quarters of comparable sales growth, and two quarters of net sales growth.
Macy’s elevated its full-year net sales projection to between $21.68 billion and $21.83 billion, up from the previous range of $21.5 billion to $21.75 billion. The company also increased its comparable sales outlook to a 1% to 1.5% increase from the prior guidance of 0.5% to 1.2% growth. Additionally, the retailer raised its full-year earnings per share guidance to $2.15 to $2.35, compared with previous guidance of $2 to $2.20, with approximately 5 cents per share attributable to tariff repayments.
During the 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 year-prior period. Adjusted earnings per share stood at 40 cents. Sales increased to approximately $4.87 billion from $4.81 billion the previous year. The company also reported that credit card revenue rose 2%, or $3 million, driven by strong credit portfolio performance and stable net credit card losses.
Macy’s has received $116 million in total tariff refunds and plans to deploy approximately $96 million of that amount toward enhancing the customer experience and advancing its turnaround initiatives. The company continues to execute on a three-year turnaround plan under Spring’s leadership, emphasizing investment in locations demonstrating strong performance within a difficult environment for department store retailers.
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