Macy’s Inc. said second-quarter net sales rose 1.1% to $4.9 billion, while comparable sales increased 2.7%, marking the fifth straight quarter of gains at the company’s flagship Macy’s banner.
At Macy’s brand stores, comparable sales rose 1.1%, including a 1.9% increase at its Reimagine 200 locations. Bloomingdale’s posted the strongest growth in the portfolio, with comparable sales up 11.3% and its highest second-quarter sales volume on record. Bluemercury comparable sales climbed 6.2%.
Gross margin rate improved to 41.5% from 39.7% a year earlier, a gain of 180 basis points. Selling, general and administrative expense fell to 38.7% of total revenue from 38.9%, even though SG&A dollars increased $16 million to $1.96 billion.
Net income jumped to $169 million from $87 million a year earlier. Diluted earnings per share doubled to 62 cents from 31 cents. Adjusted diluted EPS rose to 63 cents from 35 cents.
Adjusted EBITDA increased to $457 million from $373 million, and the margin rose 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 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 $800 million a year earlier. Total debt was $2.4 billion.
The company received $116 million in tariff refunds in the period and after quarter-end, including $98 million in the second quarter and $18 million afterward. Of that total, about $20 million is expected to flow through to full-year EPS, while $96 million is being reinvested in 2026.
Macy’s returned $51 million to shareholders through dividends in the quarter and $101 million in the first half. It also repurchased 2.2 million shares for $50 million during the quarter, bringing first-half repurchases to 4.9 million shares for $100 million.
Looking ahead, Macy’s raised its full-year outlook. 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 are now forecast to rise 1.0% to 1.5%, versus an earlier range of 0.5% to 1.2%. Adjusted EBITDA margin is now projected at 7.8% to 8.0%, up from 7.7% to 7.9%, and adjusted diluted EPS is expected to be $2.15 to $2.35, versus $2.00 to $2.20 previously. The market has reacted to these announcements by moving the company's shares -4.18% to a price of $20.61. For more information, read the company's full 8-K submission here.
