Macy’s reported second-quarter 2026 net sales of $4.9 billion, up 1.1% from a year earlier, while comparable sales increased 2.7% across the company and management raised its full-year sales and earnings outlook.
Excluding the effect of fiscal 2025 store closures, net sales increased 1.9%. Go-forward comparable sales increased 2.8%.
Performance was positive across all three major nameplates.
Macy’s comparable sales increased 1.1%, with the Reimagine 200 locations growing 1.9%. Bloomingdale’s comparable sales increased 11.3%, producing the highest second-quarter sales volume in the brand’s history, while Bluemercury comparable sales increased 6.2%.
Gross margin increased 180 basis points to 41.5%. The quarter included a 180-basis-point benefit from net tariff refunds, partially offset by a 10-basis-point headwind from ongoing tariff and fuel costs. Excluding those effects, gross margin increased 10 basis points.
SG&A expense was $1.96 billion, or 38.7% of total revenue, a 20-basis-point improvement as a percentage of revenue.
GAAP net income nearly doubled to $169 million from $87 million. Adjusted net income increased to $170 million from $98 million.
GAAP diluted EPS increased to $0.62 from $0.31, while adjusted diluted EPS rose to $0.63 from $0.35. The 2026 results included a $0.23-per-share net benefit from tariff refunds after reinvestments in the business.
Adjusted EBITDA increased to $457 million, or 9.0% of total revenue, from $373 million, or 7.5%, a year earlier.
Macy’s ended the quarter with $1.3 billion in cash and cash equivalents, up from $800 million a year earlier, and $2.0 billion of available capacity under its asset-based credit facility. Total debt was $2.4 billion, with no material long-term debt maturities until 2030.
The company received $116 million of expected IEEPA tariff refunds, including $98 million during the quarter and $18 million after quarter-end. Approximately $20 million is expected to flow through to full-year EPS, while the remaining $96 million is being reinvested in customer initiatives and the Bold New Chapter strategy.
Macy’s returned $51 million to shareholders through dividends during the quarter and repurchased 2.2 million shares for $50 million. First-half repurchases totaled $100 million.
For fiscal 2026, Macy’s now expects net sales of $21.675 billion to $21.825 billion, compared with previous guidance of $21.5 billion to $21.75 billion.
Comparable sales are expected to increase 1.0% to 1.5%, adjusted EBITDA margin is expected at 7.8% to 8.0%, and adjusted diluted EPS is projected at $2.15 to $2.35.
KEY QUOTES:
“Our second-quarter performance builds on the progress our colleagues have consistently delivered through our Bold New Chapter strategy. 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. As we enter the second half of the year, we remain focused on scaling what is resonating most with customers, exciting brands and assortments and compelling events and experiences. Combined with disciplined execution, we expect these efforts to continue to build a durable foundation for sustainable, profitable growth.”
Tony Spring, Chairman and Chief Executive Officer of Macy’s
