Macy’s (NYSE:M) Posts Earnings Results, Beats Estimates By $0.26 EPS

Macy’s (NYSE:M) released its earnings results on Thursday. The company reported $0.63 EPS for the quarter, beating analysts’ consensus estimates of $0.37 by $0.26, FiscalAI reports. Macy’s had a return on equity of 13.21% and a net margin of 3.29%.The company had revenue of $5.06 billion during the quarter, compared to analysts’ expectations of $4.81 billion. During the same quarter last year, the business posted $0.41 EPS. The firm’s revenue for the quarter was up 1.1% compared to the same quarter last year. 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

Shares of NYSE:M opened at $22.03 on Friday. Macy’s has a 1-year low of $16.41 and a 1-year high of $26.58. The company has a debt-to-equity ratio of 0.49, a current ratio of 1.59 and a quick ratio of 0.44. The business has a fifty day moving average price of $23.47 and a 200-day moving average price of $21.43. The company has a market capitalization of $5.79 billion, a PE ratio of 8.07 and a beta of 1.41.

Macy’s Dividend Announcement

The business also recently announced a quarterly dividend, which will be paid on Thursday, October 1st. Stockholders of record on Tuesday, September 15th will be paid a $0.1915 dividend. This represents a $0.77 dividend on an annualized basis and a dividend yield of 3.5%. The ex-dividend date of this dividend is Tuesday, September 15th. Macy’s’s dividend payout ratio is currently 31.82%.

Wall Street Analyst Weigh In

A number of research firms have issued reports on M. JPMorgan Chase & Co. increased their price objective on Macy’s from $21.00 to $27.00 and gave the stock a “neutral” rating in a report on Thursday, June 4th. TD Cowen upped their target price 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. Telsey Advisory Group increased their price target on shares of Macy’s from $20.00 to $23.00 and gave the stock a “market perform” rating in a research note on Thursday, June 4th. Morgan Stanley reissued an “overweight” rating and set a $30.00 price target on shares of Macy’s in a research report on Monday, July 6th. Finally, UBS Group boosted their price objective on shares of Macy’s from $9.00 to $10.00 and gave the stock a “sell” rating in a research note on Wednesday, August 26th. One investment analyst has rated the stock with a Strong Buy rating, two have issued a Buy rating, eight have given a Hold rating and two have given a Sell rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Hold” and an average price target of $22.78.

More Macy’s News

Here are the key news stories impacting Macy’s this week:

• Positive Sentiment: Macy’s exceeded analysts’ expectations for second-quarter earnings and revenue. Reported adjusted EPS was approximately $0.40 versus the $0.37 consensus, while revenue rose 1.1% year over year to roughly $4.9 billion. The company also reported growth across its major nameplates. Macy’s Q2 Earnings and Revenues Beat Estimates
• Positive Sentiment: The retailer raised its fiscal 2026 outlook, projecting EPS of $2.15-$2.35 versus a $2.11 consensus and revenue of approximately $21.7-$21.8 billion, above the $21.1 billion consensus. Its sales outlook was supported by higher comparable sales expectations and continued demand from middle- and higher-income customers. Macy’s Posts Strong Results and Raises Guidance
• Positive Sentiment: Management said premium merchandise and tariff refunds helped results. The improving sales trend and a roughly 3.5% dividend yield may appeal to income-focused investors if the turnaround continues and cash generation remains solid. Premium Goods Drive Sales Growth
• Neutral Sentiment: BTIG Research reaffirmed its “neutral” rating, indicating that the earnings improvement and valuation are balanced by execution risks in the ongoing turnaround. BTIG Research Rating
• Negative Sentiment: Despite the beat and guidance increase, investors initially focused on Macy’s projected third-quarter adjusted loss of $0.19-$0.23 per share, which is wider than the $0.12 consensus loss. Softer near-term comparable-sales expectations and broader market weakness also pressured sentiment. Macy’s Stock and Fiscal 2026 Outlook

Insider Transactions at Macy’s

In other Macy’s news, SVP Paul Griscom sold 10,077 shares of Macy’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 transaction, the senior vice president directly owned 25,373 shares of the company’s stock, valued at approximately $650,309.99. The trade was a 28.43% decrease in their ownership of the stock. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, EVP Thomas Edwards, Jr. sold 16,419 shares of the company’s stock in a transaction that occurred on Wednesday, June 24th. The stock was sold at an average price of $24.89, for a total transaction of $408,668.91. Following the completion of the transaction, the executive vice president owned 20,000 shares in the company, valued at approximately $497,800. This represents a 45.08% decrease in their position. The disclosure for this sale is available in the SEC filing. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Insiders own 1.05% of the company’s stock.

Hedge Funds Weigh In On Macy’s

Hedge funds have recently added to or reduced their stakes in the company. Smartleaf Asset Management LLC increased its holdings in shares of Macy’s by 51.7% in the 4th quarter. Smartleaf Asset Management LLC now owns 1,543 shares of the company’s stock worth $34,000 after purchasing an additional 526 shares in the last quarter. CIBC Private Wealth Group LLC boosted its position in shares of Macy’s by 35.9% during the fourth quarter. CIBC Private Wealth Group LLC now owns 1,838 shares of the company’s stock valued at $41,000 after buying an additional 486 shares during the last quarter. Aster Capital Management DIFC Ltd purchased a new stake in shares of Macy’s during the fourth quarter valued at $54,000. Northwestern Mutual Wealth Management Co. boosted its position in shares of Macy’s by 31.8% during the fourth quarter. Northwestern Mutual Wealth Management Co. now owns 3,528 shares of the company’s stock valued at $78,000 after buying an additional 851 shares during the last quarter. Finally, Vestcor Inc bought a new stake in Macy’s in the 3rd quarter worth about $118,000. 87.36% of the stock is currently owned by hedge funds and other institutional investors.

About Macy’s

Macy’s, Inc is an American omnichannel retailer that sells a broad range of merchandise through department stores, specialty stores and digital platforms. Its product offerings include apparel, accessories, beauty products, home furnishings, jewelry, furniture and other consumer goods.

The company operates through several well-known retail banners, including Macy’s, Bloomingdale’s and Bluemercury. Macy’s serves customers primarily in the United States through its stores and e-commerce websites, while Bloomingdale’s offers fashion, accessories, beauty and home merchandise through department stores, outlets and digital channels.