Macy’s reported positive results for its fiscal second quarter, demonstrating growth momentum across its portfolio of brands. The company achieved overall comparable sales growth of 2.7%, with its namesake Macy’s brand posting a 1.1% increase. The gains were attributed primarily to the company’s reimagined stores, which represent a key element of its broader turnaround initiative. Higher-end division Bloomingdale’s showed particularly strong performance with comparable sales rising 11.3%, while beauty brand Bluemercury increased 6.2%.
In response to the stronger-than-expected results, management raised its full-year outlook across multiple metrics. Net sales guidance was increased 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 guidance to project growth of 1% to 1.5%, up from the previous expectation of 0.5% to 1.2% growth. Full-year earnings per share guidance was raised to $2.15 to $2.35 from $2 to $2.20, with roughly 5 cents per share coming from tariff repayments.
The company disclosed that it received $116 million in total tariff refunds and plans to allocate approximately $96 million toward customer experience enhancements and turnaround efforts rather than temporary price reductions. Management characterized this approach as supporting long-term strategic objectives. The remaining refunds are being held in reserve due to uncertainty surrounding fuel costs.
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, up slightly from $4.81 billion year-over-year. Credit card revenue increased 2%, reflecting what management described as a healthy portfolio with stable net credit card losses. Despite the positive operational results, the stock declined nearly 5% following the announcement.
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