Macy's Raises Annual Profit Forecast Amid Tariff Refunds and Strong Quarterly Sales
Macy’s Inc. (NYSE:M) raised its full-year profit forecast following a better-than-expected second-quarter performance, driven by tariff refunds and stronger sales across multiple banners. The company reported revenue of $4.9 billion for the quarter, exceeding analyst estimates and up slightly from last year. Adjusted earnings per share were boosted to $0.63 due in part to $0.23 from tariff refunds, with GAAP EPS doubling to $0.62. Macy’s received a total of $116 million in tariff refunds during the quarter and after its close, contributing an $84 million pre-tax net benefit that added 180 basis points to gross margin. Comparable sales rose across all banners, with Bloomingdale's seeing the strongest growth at 11.3%. For fiscal 2026, Macy’s raised revenue guidance but still fell short of Wall Street expectations. Despite improved forecasts for adjusted EPS and comparable sales, updated targets like revenue and EBITDA margin remain below analyst projections. The company plans to reinvest most tariff refunds, with only about $0.05 per share expected to impact annual earnings.
Topics: earnings profit guidance revenue growth tariff refunds