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Macy’s (M) Q2 2026 earnings

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Macy's (M) Q2 2026 earnings

Macy’s on Thursday posted growth across the company in its second fiscal quarter and raised its guidance as it continues its turnaround.

The retailer said overall comparable sales rose 2.7% for the quarter, with comparable sales for its namesake brand up 1.1%. The company said that growth was largely driven by its so-called reimagined stores, locations it has revamped as one of the focuses of its turnaround.

Macy’s said its higher-end store line Bloomingdale’s saw an 11.3% increase in comparable sales, while beauty brand Bluemercury was up 6.2%.

“We’re creating, I think, performance beyond just one quarter,” CEO Tony Spring told CNBC. “This is now six quarters of better-than-expected top line and bottom line performance, five quarters of comparable sales growth, two quarters of net sales growth.”

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The company also raised its full-year guidance and now projects net sales to be between $21.68 billion and $21.83 billion, compared to a prior expectation of between $21.5 billion and $21.75 billion. It also raised its comparable sales outlook range from between 0.5% and 1.2% growth to a 1% to 1.5% increase.

Macy’s hiked its full-year earnings per share outlook to a range of $2.15 to $2.35, up from $2 to $2.20. It said that included a roughly 5 cent per share bump from tariff repayments it will apply to its bottom line.

The retailer reported that it has received a total of $116 million in tariff refunds, and will invest most of that — about $96 million — in the customer experience and its turnaround plan.

Here’s how the company performed in its second fiscal quarter compared with what Wall Street was anticipating, based on a survey of analysts by LSEG:

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  • Earnings per share: 40 cents adjusted; it was not immediately clear if that was comparable to the 37 cents expected
  • Revenue: $4.87 billion vs. $4.83 billion expected

The company reported net income of $169 million, or 62 cents per share, compared to $87 million, or 31 cents per share, the year prior. Adjusting for one-time items, Macy’s reported earnings per share of 40 cents.

Sales rose to roughly $4.87 billion, up just slightly from $4.81 billion the year prior.

The company added that credit card revenue was up 2%, or $3 million, for the quarter, due to what it called a “healthy credit portfolio and stable net credit card losses.”

Macy’s is nearing the end of a three-year turnaround plan under CEO Tony Spring that aims to spark growth and invest in locations that perform well against a challenging backdrop for department stores. Spring told CNBC last quarter that the company was seeing strong consumer behavior despite a challenging macroenvironment.

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Why some experts increasingly fear AI will take over

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BBC InDepth

For years, researchers concerned about existential AI risks have argued that powerful systems could eventually act in ways that conflict with human interests. Critics often refer to them as “AI doomers”.

But as details of the OpenAI incident have emerged, those concerns have grown, including among some researchers working in AI labs.

The Silicon Valley giant’s chief scientist, Jakub Pachocki, said the risks associated with AI are “unfortunately going to grow from here” as he and others are building what he calls “an alien intellect exceeding our own”.

In a lengthy blog post, he admitted that the outbreaks at OpenAI showed that his AI agents “went against the spirit of the values they were taught”.

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The issue for OpenAI, Anthropic and other tech giants is that no one seems to have cracked the so-called alignment problem – in other words, whether AI aligns with human values.

Pachocki defines alignment as a “high-level set of principles” that artificial intelligences should adhere to no matter what the task or scenario is.

Currently, AI systems are very good at pursuing objectives set by their users, but they do it literally rather than intuitively. The analogy often used is that of a wish-granting genie with a magic lamp: they follow the exact letter of an instruction, even if doing so creates other problems. AI doesn’t have the same instinctive moral guardrails as humans.

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