Macy’s (NYSE:M – Get Free Report) issued its quarterly earnings data on Thursday. The company reported $0.63 earnings per share for the quarter, topping the consensus estimate of $0.37 by $0.26, FiscalAI reports. Macy’s had a net margin of 2.94% and a return on equity of 13.68%. The firm had revenue of $5.06 billion for the quarter, compared to analysts’ expectations of $4.81 billion. During the same quarter in the prior year, the business earned $0.41 EPS. The business’s quarterly revenue was up 1.1% on a year-over-year basis. Macy’s updated its Q3 2026 guidance to -0.230–0.190 EPS and its FY 2026 guidance to 2.150-2.350 EPS.
Here are the key takeaways from Macy’s’ conference call:
- Second-quarter results exceeded expectations: Comparable sales rose 2.7%, adjusted EBITDA reached $457 million, and adjusted EPS was $0.63, including an approximately $0.23 benefit from tariff refunds. Excluding that benefit, EPS still increased 14% year over year.
- All three nameplates grew: Macy’s posted its fifth consecutive quarter of positive comparable sales, with Reimagine 200 stores up 1.9%; Bloomingdale’s delivered record second-quarter sales and 11.3% comparable-sales growth, while Bluemercury grew 6.2%.
- Full-year guidance was raised: Macy’s now expects net sales of $21.675 billion to $21.825 billion, comparable sales growth of 1.0% to 1.5%, and adjusted diluted EPS of $2.15 to $2.35. Management cited stronger results, strategy momentum, and the pass-through of part of its tariff refunds.
- Management is reinvesting tariff refunds for longer-term growth: About $20 million will flow to the bottom line, while the remainder will support pricing in selected categories, brand marketing, Reimagine pilots, and fuel-cost mitigation. Third-quarter comparable sales guidance ranges from down 0.5% to up 0.5%, reflecting a difficult comparison and continued consumer selectivity at lower income levels.
- Cash generation and operational initiatives improved: First-half free cash flow was $262 million versus an $88 million outflow last year, cash rose to $1.3 billion, and the company returned $201 million to shareholders. Supply-chain automation, AI-assisted replenishment, and customer-facing shopping assistants are expected to improve efficiency and service over time.
Macy’s Price Performance
M opened at $20.50 on Friday. The stock’s 50 day moving average price is $23.49 and its 200-day moving average price is $21.42. Macy’s has a 52-week low of $16.41 and a 52-week high of $26.58. The stock has a market capitalization of $5.39 billion, a PE ratio of 8.47 and a beta of 1.41. The company has a debt-to-equity ratio of 0.50, a quick ratio of 0.44 and a current ratio of 1.48.
Macy’s Dividend Announcement
The firm also recently disclosed a quarterly dividend, which will be paid on Thursday, October 1st. Stockholders of record on Tuesday, September 15th will be given a $0.1915 dividend. This represents a $0.77 dividend on an annualized basis and a dividend yield of 3.7%. The ex-dividend date is Tuesday, September 15th. Macy’s’s dividend payout ratio (DPR) is currently 31.82%.
More Macy’s News
Here are the key news stories impacting Macy’s this week:
- Positive Sentiment: Macy’s raised its fiscal 2026 outlook, projecting adjusted EPS of $2.15–$2.35 and revenue of approximately $21.7–$21.8 billion, above Wall Street’s estimates. Comparable sales also improved, suggesting the turnaround is gaining traction. Macy’s posts strong results, raises guidance as turnaround begins to take hold
- Positive Sentiment: Second-quarter earnings and revenue exceeded consensus expectations, with revenue increasing about 1.1% year over year. Growth was supported by premium merchandise and stronger spending from middle- and high-income customers across Macy’s brands. Macy’s Raises Outlook as Premium Goods Drive Sales Growth
- Positive Sentiment: Income-oriented investors may view the roughly 3.5% dividend yield as attractive, particularly if improving sales and profitability continue to support cash generation. Tariff refunds also provided a benefit to the full-year profit outlook. Should Income Investors Buy the Dip in Macy’s Stock After Q2 Earnings?
- Negative Sentiment: Third-quarter EPS guidance of a $0.19–$0.23 loss was weaker than the roughly $0.12 loss analysts expected, while revenue guidance was broadly in line. The cautious near-term outlook overshadowed the quarterly beat and contributed to the selloff. Why a beat and raise isn’t driving Macy’s stock higher?
Wall Street Analysts Forecast Growth
A number of research firms have recently commented on M. Evercore set a $22.00 price target on shares of Macy’s in a research report on Thursday, June 4th. UBS Group boosted their price objective on Macy’s from $9.00 to $10.00 and gave the stock a “sell” rating in a report on Wednesday, August 26th. TD Cowen upped their price objective on shares of Macy’s from $20.00 to $25.00 and gave the stock a “hold” rating in a research report on Monday, June 22nd. Morgan Stanley reiterated an “overweight” rating and set a $30.00 target price on shares of Macy’s in a research report on Monday, July 6th. Finally, Weiss Ratings raised shares of Macy’s from a “hold (c+)” rating to a “buy (b-)” rating in a report on Friday, August 21st. One analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating, seven have given a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat, the company currently has an average rating of “Hold” and a consensus target price of $22.78.
View Our Latest Report on Macy’s
Insiders Place Their Bets
In other news, SVP Paul Griscom sold 10,077 shares of the firm’s stock in a transaction dated Thursday, June 25th. The shares were sold at an average price of $25.63, for a total value of $258,273.51. Following the completion of the sale, the senior vice president directly owned 25,373 shares of the company’s stock, valued at approximately $650,309.99. This trade represents a 28.43% decrease in their position. The transaction was disclosed in a document filed with the SEC, which is accessible through the SEC website. Also, EVP Thomas Edwards, Jr. sold 16,419 shares of the business’s stock in a transaction dated Wednesday, June 24th. The shares were sold at an average price of $24.89, for a total transaction of $408,668.91. Following the transaction, the executive vice president owned 20,000 shares in the company, valued at $497,800. This represents a 45.08% decrease in their position. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. 1.05% of the stock is currently owned by insiders.
Institutional Investors Weigh In On Macy’s
Hedge funds and other institutional investors have recently added to or reduced their stakes in the company. Dimensional Fund Advisors LP increased its position in Macy’s by 3.2% during the 4th quarter. Dimensional Fund Advisors LP now owns 16,145,972 shares of the company’s stock valued at $356,020,000 after buying an additional 494,280 shares in the last quarter. State Street Corp grew its stake in shares of Macy’s by 0.5% during the 2nd quarter. State Street Corp now owns 9,420,372 shares of the company’s stock valued at $111,547,000 after purchasing an additional 45,997 shares during the period. Arrowstreet Capital Limited Partnership raised its position in Macy’s by 39.9% in the third quarter. Arrowstreet Capital Limited Partnership now owns 5,950,950 shares of the company’s stock worth $106,701,000 after acquiring an additional 1,697,412 shares during the period. Invesco Ltd. raised its holdings in Macy’s by 160.5% in the 2nd quarter. Invesco Ltd. now owns 4,283,107 shares of the company’s stock worth $49,941,000 after purchasing an additional 2,639,132 shares during the period. Finally, AQR Capital Management LLC grew its stake in shares of Macy’s by 42.7% during the 4th quarter. AQR Capital Management LLC now owns 4,000,339 shares of the company’s stock valued at $87,687,000 after acquiring an additional 1,197,785 shares during the period. 87.36% of the stock is owned by hedge funds and other institutional investors.
About Macy’s
Macy’s, Inc is a leading American omnichannel retailer operating under the Macy’s brand, as well as specialty divisions Bloomingdale’s and Bluemercury. The company’s retail portfolio encompasses full-line department stores, fashion-focused specialty outlets and a high-end beauty chain, offering consumers a wide array of apparel, footwear, accessories, cosmetics and home furnishings. Through its integrated network of physical stores and digital platforms, Macy’s seeks to deliver a seamless shopping experience that blends in-store service with online convenience.
The company’s product assortment spans men’s, women’s and children’s clothing, beauty and personal care products, housewares and home décor.
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