Macy’s (M) Stock Slides Despite Strong Q2 Beat and Upgraded Outlook

Key Takeaways

• The department store chain delivered adjusted earnings of 63 cents per share for Q2, significantly surpassing the Street’s 37-cent projection
• Revenue climbed 1.1% to reach $4.87 billion, topping analyst predictions of $4.81 billion
• Management elevated full-year projections for a second consecutive time, now anticipating adjusted EPS between $2.15 and $2.35
• The retailer collected $98 million in tariff reimbursements during the period, contributing 23 cents per share to results
• Shares slid 4.7% to $20.50 in early trading, dropping beneath the 200-day moving average

Macy’s shares tumbled 4.7% to $20.50 during Thursday’s premarket session on September 10, even as the department store operator delivered impressive second-quarter results and elevated its annual forecast for the second occasion in 2026.

Macy’s, Inc., M

The company announced adjusted profits of 63 cents per share for its fiscal second quarter that concluded on August 1. This figure substantially exceeded Wall Street analysts’ 37-cent estimate. During the same period last year, adjusted earnings per share stood at 35 cents.

Total revenue reached $4.87 billion, representing a 1.1% year-over-year increase and surpassing the $4.81 billion analyst consensus estimate.

Comparable store sales throughout the entire Macy’s portfolio increased 2.7%. Wall Street had projected just 1% expansion. However, this growth rate represented a modest deceleration from the 3% increase recorded during the first quarter.

The Bloomingdale’s division delivered exceptional performance. Comparable sales at this upscale brand surged 11.3%, with total sales reaching the highest second-quarter level in Bloomingdale’s entire operating history. Meanwhile, Bluemercury registered 6.2% growth, and the flagship Macy’s store locations posted a 1.1% gain.

The company’s credit card operations also performed well, with net revenue advancing 2% to $156 million during the three-month period.

Tariff Reimbursements Provided Financial Lift

Macy’s recognized a 23-cent-per-share benefit from tariff refunds this quarter, consisting of $98 million received during the reporting period plus an additional $18 million that arrived after quarter-end.

Approximately $20 million of these funds will contribute to full-year earnings per share. The company plans to reinvest the remaining $96 million into its comprehensive multi-year transformation initiative.

Chief Executive Tony Spring stated the organization continues prioritizing “scaling what is resonating most with customers” while establishing a “durable foundation for sustainable, profitable growth.”

Annual Forecast Elevated Again

Following the encouraging quarterly performance, Macy’s upgraded its full-year projections. Management now anticipates adjusted earnings per share ranging from $2.15 to $2.35, an increase from the previous $2.00 to $2.20 range.

Annual revenue expectations were revised upward to $21.68 billion to $21.83 billion, compared with the earlier forecast of $21.5 billion to $21.75 billion.

Full-year comparable sales growth is now projected at 1% to 1.5%, up from the prior 0.5% to 1.2% outlook.

The midpoint of these updated projections slightly exceeded Wall Street’s consensus estimates for both adjusted profitability and revenue.

The stock had already declined 4.2% during the previous trading session, closing beneath its 200-day moving average around the $21.60 mark for the first time since May 19.