Macy’s (M) M Q2 Financial Results Summary
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Macy’s, Inc. (M) Q2 2026: Revenue Growth and Strong EPS — Positive Outlook
Macy’s, Inc. (NYSE: M) reported a solid second quarter for 2026, with net sales reaching $4.9 billion, an increase of $53 million or +1.1% compared to the same period last year. This marks the fifth consecutive quarter of comparable sales growth, which rose by 2.7%. The company also achieved a remarkable 100% increase in GAAP diluted EPS, which reached $0.62, while adjusted diluted EPS rose 14% to $0.63, excluding a net tariff refund benefit.
This quarter is a positive development for shareholders, reflecting the effectiveness of Macy's Bold New Chapter strategy and its ongoing investments in store enhancements and customer engagement. The growth in both revenue and earnings per share indicates a robust operational performance, which is likely to bolster investor confidence.
Key Financial Metrics:
- Net Sales: $4.9 billion, up $53 million or +1.1% YoY
- Comparable Sales Growth: 2.7%
- GAAP Diluted EPS: $0.62, up 100% YoY
- Adjusted Diluted EPS: $0.63, up 14% YoY (excluding a $0.23 net tariff refund benefit)
- Gross Margin Rate: 41.5%, up 180 basis points
- Adjusted EBITDA: $457 million, or 9.0% of total revenue, compared to $373 million, or 7.5% of total revenue in Q2 2025
- Net Income: $169 million, or 3.3% of total revenue, compared to $87 million, or 1.7% of total revenue in Q2 2025
Operational Highlights:
- Bloomingdale’s: Achieved a remarkable 11.3% increase in comparable sales, marking its highest second-quarter sales volume in history.
- Bluemercury: Comparable sales increased by 6.2%.
- Reimagine 200 Stores: Comparable sales for these locations rose by 1.9%.
Macy’s has also raised its full-year guidance, now expecting net sales between $21.675 billion and $21.825 billion, compared to previous guidance of $21.5 billion to $21.75 billion. The company anticipates comparable sales growth of 1.0% to 1.5%, up from the prior range of 0.5% to 1.2%. Adjusted EBITDA guidance has been increased to 7.8% to 8.0% of total revenue, and adjusted diluted EPS is now projected to be between $2.15 and $2.35, up from $2.00 to $2.20.
Shareholder Returns:
Macy’s returned $51 million to shareholders through dividends in Q2 2026 and has declared a quarterly dividend of 19.15 cents per share, payable on October 1, 2026. The company also repurchased 2.2 million shares for $50 million during the quarter, with a total of approximately $1.0 billion remaining under its $2.0 billion share repurchase authorization.
Forward-Looking Catalysts:
Investors should watch for continued execution of the Bold New Chapter strategy, particularly the performance of the Reimagine 200 stores and the impact of ongoing investments in luxury nameplates. Additionally, the company’s ability to navigate macroeconomic challenges and maintain consumer spending will be crucial as it heads into the second half of 2026. The upcoming quarterly results will provide further insights into the effectiveness of these strategies and the overall health of the retail environment.
In summary, Macy’s Q2 2026 results reflect a strong operational performance, with significant growth in sales and earnings. The raised guidance and ongoing strategic initiatives position the company favorably for the remainder of the year, making it a compelling prospect for investors.
Consolidated Statements of Income (Unaudited)
(All amounts in millions except percentages and per share figures)
Note: All amounts are in millions.
| 13 Weeks Ended August 1, 2026 | 13 Weeks Ended August 2, 2025 | |
|---|---|---|
| Net Sales | $4,866 | $4,812 |
| Other Revenue | $193 | $187 |
| Total Revenue | $5,059 | $4,999 |
| Cost of Sales | $2,906 | $2,810 |
| Gross Margin | $2,153 | $2,189 |
| Operating Expenses: | ||
| Selling, General and Administrative | $1,964 | $1,948 |
| Other (Income) / Expenses | ($9) | ($16) |
| Operating Income | $198 | $257 |
| Interest Expense | $23 | $25 |
| Income Before Income Taxes | $175 | $232 |
| Income Taxes | $58 | $28 |
| Net Income | $169 | $204 |
| Earnings Per Share (Basic) | $0.62 | $0.31 |
| Earnings Per Share (Diluted) | $0.63 | $0.35 |
Consolidated Balance Sheets (Unaudited)
(millions)
Note: All amounts are in millions.
| August 1, 2026 | January 31, 2026 | August 2, 2025 | |
|---|---|---|---|
| ASSETS: | |||
| Current Assets: | |||
| Cash and cash equivalents | $1,294 | $1,246 | $829 |
| Receivables | $236 | $628 | $211 |
| Merchandise inventories | $4,449 | $4,412 | $4,342 |
| Prepaid expenses and other current assets | $410 | $387 | $430 |
| Income taxes receivable | $0 | $0 | $13 |
| Total Current Assets | $6,389 | $6,673 | $5,825 |
| Property and Equipment – net | $4,565 | $4,743 | $4,903 |
| Right of Use Assets | $2,071 | $2,136 | $2,210 |
| Goodwill | $828 | $828 | $828 |
| Other Intangible Assets – net | $417 | $420 | $423 |
| Other Assets | $1,456 | $1,438 | $1,362 |
| Total Assets | $15,726 | $16,238 | $15,551 |
| LIABILITIES AND SHAREHOLDERS’ EQUITY | |||
| Current Liabilities: | |||
| Short-term debt | $0 | $0 | $194 |
| Merchandise accounts payable | $1,826 | $1,807 | $1,818 |
| Accounts payable and accrued liabilities | $2,150 | $2,615 | $2,195 |
| Income taxes payable | $43 | $71 | $12 |
| Total Current Liabilities | $4,019 | $4,493 | $4,219 |
| Long-Term Debt | $2,433 | $2,432 | $2,432 |
| Long-Term Lease Liabilities | $2,656 | $2,772 | $2,855 |
| Deferred Income Taxes | $828 | $805 | $723 |
| Other Liabilities | $862 | $876 | $871 |
| Shareholders' Equity | $4,928 | $4,860 | $4,451 |
| Total Liabilities and Shareholders’ Equity | $15,726 | $16,238 | $15,551 |
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