Macy’s Raises Outlook Following Strong Second-Quarter Profit Driven by Tariff Refunds and Luxury Sales Growth
Macy's reported a significant increase in second-quarter profits, with net income nearly doubling to $169 million. This was driven largely by tariff refunds under the International Emergency Economic Powers Act (IEEPA), which contributed $0.23 per share for the quarter and totaled $116 million overall. The company also saw strong performance from its luxury brand Bloomingdale's, with comparable sales rising 11.3%. Macy’s raised its full-year revenue forecast to between $21.68 billion and $21.83 billion and increased adjusted earnings per share guidance. The retailer plans to reinvest most of the tariff refunds into strategic initiatives under its 'Bold New Chapter' plan, with around $20 million expected to impact annual earnings directly. Gross margins expanded by 180 basis points year-on-year due in part to these refunds and improved cost management. Despite higher sales driving up SG&A expenses by $16 million, the company maintained efficiency as a percentage of revenue. Macy’s CEO Tony Spring highlighted progress from strategic investments across its portfolio, including strong performance at Reimagine 200 Macy's stores and Bluemercury. The outlook remains cautious due to macroeconomic uncertainties but is optimistic about continued growth through customer-focused strategies.
