Macy’s (M) Q2 2027 earnings summary

Executive summary

• Achieved 2.7% comparable sales growth and 1.1% net sales growth in Q2 2026, with all nameplates posting positive comps and Bloomingdale's recording its highest Q2 sales ever.

• Adjusted diluted EPS was $0.63, up 80% year-over-year, and GAAP EPS doubled; adjusted EPS up 14% excluding tariff refund benefit.

• Raised full-year guidance for net sales, comparable sales, adjusted EBITDA, and adjusted EPS, reflecting confidence in ongoing initiatives and partial pass-through of tariff refunds.

• Strategic investments in merchandising, AI-powered customer engagement, and supply chain efficiency contributed to improved performance.

• The Bold New Chapter strategy and enterprise-wide improvements drove outperformance across all key metrics.

Financial highlights

• Q2 2026 net sales were $4.9B–$5.3B, up 1.1% year-over-year; comparable sales up 2.7%.

• Adjusted EBITDA was $457M (9% of revenue), up from $373M (7.5%) last year; gross margin improved to 41.5% (+180 bps).

• GAAP net income was $169M (3.3% of revenue); adjusted net income $170M (3.4%).

• Operating cash flow for H1 was $586M; free cash flow $262M (vs. outflow of $88M prior year).

• Cash and equivalents at quarter end were $1.3B, with $201M returned to shareholders in H1 via dividends and buybacks.

Outlook and guidance

• Raised FY2026 guidance: net sales $21.675B–$21.825B, comparable sales up 1.0–1.5%, adjusted EBITDA margin 7.8–8.0%, adjusted EPS $2.15–$2.35.

• Q3 net sales expected at $4.65B–$4.7B; comparable sales flat to down 0.5%; adjusted EPS loss of $0.19–$0.23.

• Guidance incorporates reinvestment of most tariff refunds and continued investment in Reimagine 200 and luxury nameplates.

• Management expects continued growth driven by investments in digital, merchandising, and operational efficiency.

• Liquidity and capital resources are sufficient for anticipated needs for at least the next twelve months.