Macy's Q2 2026 Net Sales Up 1.1%

By Ahmed Jamerson • Thursday, September 10 13:03 • Permanent Link

Macy’s Inc. reported second-quarter 2026 net sales of $4.9 billion, up 1.1% from a year earlier, as comparable sales rose 2.7% and go-forward comparable sales increased 2.8%.

The company’s namesake Macy’s chain posted comparable sales growth of 1.1%, with its Reimagine 200 stores up 1.9%. Bloomingdale’s delivered the strongest performance in the portfolio, with comparable sales up 11.3% and its highest second-quarter sales volume on record. Bluemercury comparable sales rose 6.2%.

Gross margin improved to 41.5%, up 180 basis points from last year. Excluding the benefit from net tariff refunds, gross margin was up 10 basis points. Selling, general and administrative expenses fell to 38.7% of total revenue, down 20 basis points, even as SG&A dollars rose $16 million to $1.96 billion.

Net income climbed to $169 million from $87 million a year ago. Diluted earnings per share doubled to $0.62 from $0.31. Adjusted diluted EPS rose to $0.63 from $0.35, or 14% higher excluding a $0.23 per share tariff refund benefit. Adjusted EBITDA increased to $457 million from $373 million, and the margin improved to 9.0% from 7.5%.

Other revenue rose 3.2% to $193 million. Credit card net revenues increased 2.0% to $156 million, while Macy’s media network net revenue climbed 8.8% to $37 million.

Inventory increased 2.5% year over year. Cash and cash equivalents ended the quarter at $1.3 billion, up from $0.8 billion a year ago. Total debt was $2.4 billion, with $2.0 billion of available borrowing capacity.

During the quarter, Macy’s returned $51 million to shareholders through dividends and repurchased 2.2 million shares for $50 million. In the first half, it returned $101 million in dividends and bought back 4.9 million shares for $100 million.

The company also raised full-year 2026 guidance. It now expects net sales of $21.675 billion to $21.825 billion, compared with prior guidance of $21.5 billion to $21.75 billion. Comparable sales guidance was lifted to growth of 1.0% to 1.5% from 0.5% to 1.2%. Adjusted EBITDA margin guidance was raised to 7.8% to 8.0% from 7.7% to 7.9%, and adjusted diluted EPS guidance moved up to $2.15 to $2.35 from $2.00 to $2.20. Today the company's shares have moved -2.58% to a price of $20.955. Check out the company's full 8-K submission here.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.