Macy's Raises Guidance After Strong Q2 Performance
Macy’s (NYSE:M) reported better-than-expected second-quarter results in 2026, with comparable sales rising by 2.7% and adjusted earnings per share reaching $0.63—well above the estimated $0.37. The company raised its full-year net sales guidance to between $21.67 billion and $21.82 billion from a previous range of $21.5 billion to $21.75 billion, reflecting progress in its three-year turnaround strategy that includes store closures and brand reinvestment. Despite the positive results, investors remain cautious due to concerns over earnings quality—partly driven by tariff refunds—and broader economic uncertainties such as high gas prices affecting consumer spending. The stock’s forward P/E ratio of 9.55 is lower than its sector median but has not yet translated into strong investor confidence. Hedge fund interest in Macy's increased slightly, with 47 funds holding positions compared to 44 previously. However, short interest remains high at 12.86% as of August 14.
Topics: earnings report guidance update retail turnaround strategy