Macy’s lifts 2026 outlook as Bloomingdale’s posts record second quarter

Macy’s, Inc. reported second-quarter net sales of $4.9 billion, representing a 1.1% year-over-year increase. The company posted GAAP diluted earnings per share of $0.62, a 100% rise, while adjusted diluted EPS reached $0.63. This performance marks the fifth consecutive quarter of comparable sales growth for the parent company, signaling stabilization in its core operations.

The results, reported by the GN auto stocks/consumer: retail earnings desk, highlight a divergence in brand performance. While the Macy’s banner saw modest gains, luxury and beauty segments drove significant volume. The company also maintained its shareholder return program, repurchasing 2.2 million shares during the quarter and continuing its regular dividend payments.

Bloomingdale’s achieves record second-quarter volume

Bloomingdale’s posted comparable sales growth of 11.3%, marking the second consecutive quarter of double-digit expansion. This surge resulted in the highest second-quarter sales volume in the brand’s history. The strong performance was attributed to strategic assortment updates and targeted marketing efforts that resonated with high-end consumers.

Bluemercury, the company’s beauty specialty retailer, also contributed to the overall growth narrative with comparable sales rising 6.2%. The combined strength of these two nameplates offset slower growth in the broader department store segment, demonstrating the effectiveness of Macy’s portfolio diversification strategy.

Reimagine 200 stores lead core growth

The Macy’s banner reported a 1.1% increase in comparable sales. A subset of these locations, designated as Reimagine 200 stores, outperformed the brand average with a 1.9% sales lift. These stores have undergone significant renovations and inventory restructuring, which the company credits for improved customer traffic and conversion rates.

Operating efficiency improved alongside sales growth. Selling, general, and administrative expenses as a percentage of total revenue decreased by 20 basis points. This cost discipline, combined with higher gross margins, supported the doubling of GAAP EPS and contributed to the company’s adjusted EBITDA expansion.

Macy’s raises full-year financial guidance

Based on first-half performance, Macy’s, Inc. raised its annual fiscal year 2026 guidance. The upward revision includes increased targets for net sales, comparable sales, adjusted EBITDA, and adjusted diluted EPS. The company also noted it has received all expected tariff refunds, which provided a net benefit of $0.23 per share to adjusted EPS.

Management cited the successful execution of the Bold New Chapter strategy as the primary driver for the outlook boost. The company ended the quarter with strong liquidity positions, allowing it to continue funding capital investments and shareholder returns without compromising its balance sheet stability.