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

Macy’s (NYSE:M) issued its quarterly earnings data on Thursday. The company reported $0.63 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.37 by $0.26, FiscalAI reports. Macy’s had a return on equity of 13.68% and a net margin of 2.94%.The firm had revenue of $5.06 billion during the quarter, compared to the consensus estimate of $4.81 billion. During the same period last year, the company earned $0.41 EPS. The company’s quarterly revenue was up 1.1% on a year-over-year basis. 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 Stock Performance

NYSE:M opened at $20.50 on Friday. The company has a fifty day simple moving average of $23.49 and a two-hundred day simple moving average of $21.42. The company has a market cap of $5.39 billion, a price-to-earnings ratio of 8.47 and a beta of 1.41. The company has a quick ratio of 0.44, a current ratio of 1.48 and a debt-to-equity ratio of 0.50. Macy’s has a 52 week low of $16.41 and a 52 week high of $26.58.

Macy’s Dividend Announcement

The firm also recently declared a quarterly dividend, which will be paid on Thursday, October 1st. Shareholders of record on Tuesday, September 15th will be given a $0.1915 dividend. This represents a $0.77 annualized dividend and a yield of 3.7%. The ex-dividend date of this dividend is Tuesday, September 15th. Macy’s’s dividend payout ratio (DPR) is currently 31.82%.

Analyst Upgrades and Downgrades

A number of brokerages have weighed in on M. Citigroup lifted their price target on shares of Macy’s from $22.00 to $24.00 and gave the company a “neutral” rating in a research report on Tuesday, August 25th. Telsey Advisory Group increased their price objective on shares of Macy’s from $20.00 to $23.00 and gave the stock a “market perform” rating in a research report on Thursday, June 4th. Evercore set a $22.00 target price on shares of Macy’s in a report on Thursday, June 4th. Weiss Ratings raised Macy’s from a “hold (c+)” rating to a “buy (b-)” rating in a research report on Friday, August 21st. Finally, JPMorgan Chase & Co. upped their price target on Macy’s from $21.00 to $27.00 and gave the stock a “neutral” rating in a research note on Thursday, June 4th. One analyst has rated the stock with a Strong Buy rating, three have issued a Buy rating, seven have issued a Hold rating and two have issued a Sell rating to the stock. According to MarketBeat.com, the stock presently has an average rating of “Hold” and an average target price of $22.78.

Trending Headlines about Macy’s

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

• Positive Sentiment: Macy’s exceeded second-quarter expectations, reporting approximately $0.40 in adjusted EPS and $4.9 billion in revenue versus consensus estimates of $0.37 and $4.83 billion, respectively. Revenue increased 1.1% year over year. Macy’s Q2 Earnings and Revenues Beat Estimates
• Positive Sentiment: The retailer raised its fiscal 2026 outlook, calling for EPS of $2.15–$2.35 and revenue of roughly $21.7–$21.8 billion, above Wall Street expectations. Comparable sales also improved, supporting management’s view that its turnaround is gaining traction. Macy’s Posts Strong Results and Raises Guidance
• Positive Sentiment: Sales growth was helped by premium merchandise and stronger spending from middle- and high-income customers across Macy’s nameplates. The roughly 3.5% dividend yield may also appeal to income investors if the turnaround continues to support cash flow. Premium Goods Drive Sales Growth
• Neutral Sentiment: Unusually heavy call-option activity before the report indicated elevated bullish positioning, but it may also have increased the risk of profit-taking when the results failed to exceed already-high expectations. Macy’s Options Activity
• Negative Sentiment: Fiscal third-quarter EPS guidance of negative $0.23 to negative $0.19 was below the consensus estimate of negative $0.12. Investors may view the full-year improvement as partly aided by tariff refunds, making the earnings beat appear less durable. Broader market weakness and a sharp rise in crude oil also pressured sentiment toward retailers. Why a Beat and Raise Did Not Lift Macy’s Stock

Insider Buying and Selling at Macy’s

In other Macy’s news, SVP Paul Griscom sold 10,077 shares of the company’s stock in a transaction dated Thursday, June 25th. The stock was sold at an average price of $25.63, for a total transaction of $258,273.51. Following the sale, the senior vice president owned 25,373 shares in the company, valued at $650,309.99. This represents a 28.43% decrease in their position. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, EVP Thomas Edwards, Jr. sold 16,419 shares of the stock in a transaction dated Wednesday, June 24th. The shares were sold at an average price of $24.89, for a total value of $408,668.91. Following the completion of the sale, the executive vice president directly owned 20,000 shares in the company, valued at $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. 1.05% of the stock is currently owned by company insiders.

Hedge Funds Weigh In On Macy’s

Several hedge funds and other institutional investors have recently made changes to their positions in M. CIBC Private Wealth Group LLC grew its holdings in Macy’s by 35.9% in the 4th quarter. CIBC Private Wealth Group LLC now owns 1,838 shares of the company’s stock worth $41,000 after buying an additional 486 shares in the last quarter. Smartleaf Asset Management LLC increased its position in Macy’s by 51.7% in the 4th quarter. Smartleaf Asset Management LLC now owns 1,543 shares of the company’s stock valued at $34,000 after acquiring an additional 526 shares during the period. Parallel Advisors LLC raised its stake in Macy’s by 8.2% during the 4th quarter. Parallel Advisors LLC now owns 9,213 shares of the company’s stock valued at $203,000 after acquiring an additional 699 shares in the last quarter. Private Advisor Group LLC raised its stake in Macy’s by 4.2% during the 3rd quarter. Private Advisor Group LLC now owns 18,444 shares of the company’s stock valued at $331,000 after acquiring an additional 750 shares in the last quarter. Finally, Northwestern Mutual Wealth Management Co. boosted its position in Macy’s by 31.8% during the 4th quarter. Northwestern Mutual Wealth Management Co. now owns 3,528 shares of the company’s stock worth $78,000 after acquiring an additional 851 shares during the period. Hedge funds and other institutional investors own 87.36% of the company’s stock.

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.