Sept. 10 – Macy’s Inc. raised its fiscal 2026 sales and profit projections on Thursday after a robust quarter driven by its higher‑end Bloomingdale’s and Bluemercury brands. The department‑store operator, led by CEO Tony Spring, said the upscale segments are attracting higher‑income shoppers who continue to spend despite lingering economic uncertainty.
Revised financial outlook
Macy’s now expects net sales of $21.68 billion to $21.83 billion for fiscal 2026, up from the prior range of $21.50 billion to $21.75 billion. Adjusted earnings per share are projected at $2.15 to $2.35, compared with the earlier outlook of $2.00 to $2.20 per share.
Quarterly performance highlights
Second‑quarter revenue rose 1.1% to $4.87 billion, beating analysts’ consensus estimate of $4.83 billion compiled by LSEG. Comparable sales at Bloomingdale’s surged 11.3%, while Bluemercury posted a 6.2% increase. By contrast, sales at Macy’s namesake stores grew only 1.1%.
Adjusted profit for the quarter jumped 80% to 63 cents per share. The company attributed 23 cents of that earnings boost to tariff refunds, noting it has received $116 million in refunds to date.
Strategic focus on higher‑margin businesses
Under Spring’s “Bold New Chapter” strategy, launched in 2024, Macy’s has been concentrating on higher‑margin products and full‑price sales. The plan includes closing underperforming locations, reallocating resources to stronger markets, and expanding luxury apparel, handbags, fragrances, cosmetics and skincare offerings.
“The investments we’re making are driving results across our portfolio,” Spring said in a statement. He added that the company remains vigilant about macroeconomic and geopolitical uncertainties that could affect consumer spending, but is confident that the upscale segments will continue to support growth.
Market reaction
Following the announcement, Macy’s shares rose roughly 5% in pre‑market trading, reflecting investor optimism about the revised outlook and the company’s focus on higher‑margin categories.
Outlook
Macy’s indicated that its forecasts incorporate ongoing uncertainties in the broader economy and potential impacts from global events. Nevertheless, the firm expects the combination of tariff refunds and continued demand for luxury goods to sustain its upward trajectory through the remainder of the year.
Analysts will be watching whether the “Bold New Chapter” strategy can further narrow the performance gap between Macy’s flagship stores and its upscale banners, and how the company navigates any future economic headwinds.
Original reporting: Appleton, WI News Feed (HLL/CB) — read the source article.
