Macy’s reported positive results for its fiscal second quarter on Thursday, demonstrating progress in its ongoing transformation efforts. The company achieved overall comparable sales growth of 2.7%, with its core Macy’s nameplate registering a 1.1% increase. The retailer attributed much of this performance to its reimagined store locations, which have been central to its strategic overhaul.
The company’s higher-end banners performed particularly well during the period. Bloomingdale’s saw comparable sales increase 11.3%, while beauty-focused subsidiary Bluemercury posted a 6.2% rise. CEO Tony Spring emphasized that the company has transformed into a healthier operation through innovations including improved merchandise assortments, enhanced customer service, and better in-store displays at its revamped locations.
Macy’s elevated its financial outlook for the full year based on the stronger-than-expected quarterly performance. The company now projects net sales between $21.68 billion and $21.83 billion, up from prior guidance of $21.5 billion to $21.75 billion. The comparable sales outlook was also increased to a range of 1% to 1.5% growth, compared with the previous 0.5% to 1.2% range. Earnings per share guidance was raised to $2.15 to $2.35 from $2 to $2.20, with approximately 5 cents per share attributed to tariff refunds.
The company has secured $116 million in tariff refunds and intends to deploy roughly $96 million toward long-term customer experience improvements rather than temporary pricing initiatives. Spring noted the company is reserving a portion of the remaining funds due to uncertainty regarding fuel costs. During the quarter, net income reached $169 million, or 62 cents per share, compared with $87 million, or 31 cents per share, in the year-ago period. Sales increased modestly to approximately $4.87 billion from $4.81 billion.
Despite the positive earnings results and guidance raise, Macy’s share price declined nearly 5% on Thursday. Spring indicated the company continues to navigate a bifurcated consumer environment, positioning itself to serve both higher-income customers seeking fashion accessibility and lower-income shoppers seeking value options. The results represent progress in the company’s three-year turnaround initiative aimed at revitalizing performance amid broader industry headwinds.
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