Macy’s (M) Q2 2026 Earnings: Key Takeaways & Financial Results

Q2 Financial Results Beat Wall Street Expectations

For the fiscal second quarter, Macy’s reported total revenue of $4.87 billion, edging past the $4.83 billion expected by analysts surveyed by LSEG. Net income reached $169 million, or 62 cents per share, compared with $87 million, or 31 cents per share, during the same period a year earlier. Adjusting for one-time items, the company posted earnings per share of 40 cents.

Comparable sales for the namesake Macy’s brand rose 1.1%. Meanwhile, higher-end brand Bloomingdale’s posted an 11.3% increase in comparable sales, and beauty retailer Bluemercury saw a 6.2% lift, according to the company’s earnings report.

Turnaround Strategy Focuses on Reimagined Stores

The company’s growth was largely powered by its reimagined stores, which are central to its three-year turnaround plan. Spring told CNBC that these overhauled locations benefit from better merchandise assortments, more customer assistance, and stronger visual displays.

For high-end shoppers, Bloomingdale’s succeeded by executing innovative strategies to remain accessible and differentiated.

Tariff Refunds Fuel Long-Term Customer Investments

Macy’s raised its full-year net sales projection to a range of $21.68 billion to $21.83 billion, up from its previous outlook of $21.5 billion to $21.75 billion. The company also hiked its comparable sales outlook range to a 1% to 1.5% increase and lifted its earnings per share guidance to a range of $2.15 to $2.35.

The revised earnings guidance includes a roughly 5-cent per-share boost from $116 million in total tariff refunds received by the retailer. Rather than funding temporary price cuts, Macy’s plans to invest about $96 million of those funds directly into customer experience and its turnaround strategy. Spring noted that a small portion of the refund is being held back to protect against fuel cost uncertainties.

Consumer Spending Trends and Income Bifurcation

Spring noted that Macy’s continues to see a clear bifurcation among income cohorts. Customers with discretionary income are actively spending on fashion and personal style, while shoppers navigating tight monthly budgets due to interest rates, gas prices, and food costs are leaning more heavily into value and off-price offerings.

“For the people that have the discretionary income, they’re wanting to participate and enjoy the benefits of fashion and its accessibility to everyone to really create your own style,” Spring told CNBC. “At the same time, people that are navigating month-to-month or quarter-to-quarter… they’re going to be leveraging more value and off-price.”

Frequently Asked Questions

What drove Macy’s sales growth in the second quarter?

Overall comparable sales rose 2.7%, driven largely by reimagined Macy’s stores, an 11.3% jump at Bloomingdale’s, and a 6.2% increase at Bluemercury, according to the company.

How much did Macy’s receive in tariff refunds?

Macy’s reported receiving a total of $116 million in tariff refunds, of which it plans to invest roughly $96 million into customer experience and its long-term turnaround plan.

What is Macy’s updated full-year guidance?

Macy’s projects net sales between $21.68 billion and $21.83 billion, a comparable sales increase of 1% to 1.5%, and adjusted earnings per share between $2.15 and $2.35.