Macy’s Inc. (NYSE:M) shares fell 3.3% in premarket trading after the department store operator reported second-quarter earnings and revenue above analyst estimates but issued full-year revenue guidance below consensus expectations.
Adjusted earnings per share were $0.63, compared with an analyst consensus of $0.35. Revenue increased 1.1% year on year to $4.9 billion from $4.8 billion, exceeding the $4.78 billion estimate.
Comparable sales increased 2.7% across the company’s nameplates. Comparable sales at the Reimagine 200 Macy’s stores rose 1.1%, while Bloomingdale’s recorded an 11.3% increase and Bluemercury reported growth of 6.2%.
Macy’s Forecasts Full-Year Revenue of $21.68 Billion to $21.83 Billion
Macy’s forecast fiscal 2027 adjusted EPS of between $2.15 and $2.35. The midpoint of $2.25 matched the analyst consensus.
The company expects full-year revenue of between $21.68 billion and $21.83 billion. The midpoint of $21.76 billion was below the consensus estimate of $21.82 billion.
“Our second-quarter performance builds on the progress our colleagues have consistently delivered through our Bold New Chapter strategy,” said Tony Spring, chairman and chief executive officer. “The investments we’re making are driving results across our portfolio, from the continued outperformance of our Reimagine 200 Macy’s stores, to meaningful double-digit growth at Bloomingdale’s and another solid quarter at Bluemercury.”
Macy’s reported that its adjusted EPS of $0.63 included a $0.23 net benefit from tariff refunds. Excluding that benefit, adjusted EPS would have been $0.40, compared with $0.35 in the prior-year quarter.
Gross margin increased 180 basis points to 41.5%, with the company attributing 180 basis points of the improvement to net tariff refunds.
Macy’s received $116 million in total IEEPA tariff refunds. Approximately $20 million is expected to contribute to full-year EPS, while the remaining $96 million is being reinvested in the business.
Macy’s stock price
