Macy’s announced strong quarterly results on Thursday, with overall comparable sales increasing 2.7% during its fiscal second quarter. The company’s namesake brand posted comparable sales growth of 1.1%, while its higher-end Bloomingdale’s division achieved a notably stronger 11.3% increase. The beauty brand Bluemercury also contributed with a 6.2% gain in comparable sales.
Management attributed much of the growth to newly reimagined store locations that have been central to the company’s ongoing turnaround efforts. Chief Executive Tony Spring emphasized that the revamped Macy’s stores featured improved merchandise assortments, enhanced customer service, and better product displays. Spring stated that the company had transformed into a healthier operation with stronger positioning for shareholders, while Bloomingdale’s had maintained its appeal through innovative approaches to serve higher-end consumers.
Based on the positive momentum, Macy’s raised its full-year projections. The company now expected net sales between $21.68 billion and $21.83 billion, up from its prior range of $21.5 billion to $21.75 billion. The company also lifted its comparable sales outlook to between 1% and 1.5% growth from a 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 $2 to $2.20 range, with approximately 5 cents per share attributable to tariff refunds.
Macy’s said it had received $116 million in tariff refunds and planned to invest roughly $96 million of that amount into customer experience enhancements and its turnaround strategy rather than implement temporary price cuts. Spring indicated the company preferred investments with lasting impact to shoppers over one-time promotional benefits. The company reserved a portion of the refunds as a buffer against fuel cost uncertainties.
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, a year earlier. Sales reached approximately $4.87 billion versus $4.81 billion in the prior year period. Despite the positive results, Macy’s stock declined nearly 5% on the day of the announcement.
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