Macy’s Shares Drop Despite Strong Earnings and Raised Outlook
Shares of Macy's, Inc. (NYSE:M) fell nearly 5% in early trading despite the company reporting better-than-expected fiscal second-quarter earnings and raising its full-year outlook. The stock decline suggests investors are skeptical about the extent to which tariff refunds contributed to improved results rather than core operational improvements. Macy’s reported adjusted EPS of $0.63, well above the consensus estimate of $0.36, with revenue beating expectations at $5.06 billion. Comparable sales rose 2.7%, and gross margin expanded by 180 basis points to 41.5%. The company received $116 million in tariff refunds that contributed a 5-cent per-share benefit to its raised full-year EPS guidance of $2.15–$2.35. Retail peers like Kohl’s (KSS) and TJX Companies (TJX) saw minimal movement, indicating the selloff is specific to Macy's rather than reflecting a broader retail sector downturn.
Topics: Kohl's Macy's Stock Price Movement Tariffs TJX Companies