Key Highlights

● Second-quarter net sales rose 1.1 per cent year over year to $4,866 million.

● Bloomingdale's comparable sales rose 11.3 per cent, its highest second-quarter volume ever.

● Adjusted earnings per share were $0.63, including a $0.23 tariff-refund benefit.

● Full-year 2026 adjusted earnings guidance was raised to $2.15 to $2.35 per share.

Macy's (NYSE:M), whose common stock is registered on the New York Stock Exchange under the symbol M, published second-quarter 2026 results on 10 September 2026 for the quarter ended 1 August 2026. Net sales were $4,866 million, up 1.1 per cent from $4,812 million a year earlier, or up 1.9 per cent excluding stores closed in fiscal 2025. Total revenue, including credit card and media income, was $5,059 million. Comparable sales across the group rose 2.7 per cent. By nameplate, Macy's rose 1.1 per cent, Bloomingdale's 11.3 per cent and Bluemercury 6.2 per cent. The company said Bloomingdale's recorded its highest second-quarter sales volume. Within other revenue of $193 million, credit card revenue was $156 million, up 2.0 per cent, and Macy's Media Network contributed $37 million, up 8.8 per cent. Operating income was $244 million, or 4.8 per cent of revenue, against $149 million a year earlier, and adjusted EBITDA was $457 million.

Profit, and the tariff refund effect

Net income was $169 million, compared with $87 million in the prior-year quarter, and GAAP diluted earnings per share were $0.62. Adjusted diluted earnings per share were $0.63, including a $0.23 benefit from net tariff refunds. Excluding that benefit, adjusted earnings per share were $0.40, a 14 per cent increase. This distinction matters. The gross margin rate of 41.5 per cent was 180 basis points higher, yet that entire uplift came from net refunds of tariffs levied under the International Emergency Economic Powers Act; excluding it, the rate rose by 10 basis points. The company reported refunds totalling $116 million, of which $98 million fell in the quarter. Management said it is reinvesting about $96 million in 2026. Our reading is that underlying margin improvement was real but modest, while the headline owes much to a one-off item.

Balance sheet and capital returns

Cash stood at $1,294 million at quarter-end, against $829 million a year earlier. Total debt was $2.4 billion, with no material long-term maturities until 2030, and $2.0 billion of asset-based borrowing capacity was available. Merchandise inventories were $4,449 million, up 2.5 per cent. Cash generated from operations in the first half was $586 million, compared with $255 million in the same period of 2025, according to the quarterly filing. The company repurchased 2.2 million shares for $50 million in the quarter, leaving about $1.0 billion of a $2.0 billion authorisation. A quarterly dividend of 19.15 cents per share was declared, payable on 1 October 2026.

Strip Out the Refund and Growth Looks More Modest

Macy's flagship nameplate grew comparable sales just 1.1 per cent while Bloomingdale's and Bluemercury did the heavy lifting, and the entire 180-basis-point gross margin improvement traced to net tariff refunds rather than underlying cost or pricing gains. With guidance explicitly including about $0.05 per share of further tariff refunds and $0.18 per share of planned second-half reinvestment, the raised outlook partly reflects refund timing rather than a durable acceleration in the core department-store business.