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Earnings call · Jul 2026 (Q2 FY27)

Macy's Q2 FY27 earnings call M

Sep 10, 2026 Source

Executive summary

Macy's, Inc. Q2 FY27 — Strong Performance Across Nameplates, Raised Full-Year Outlook

Macy's delivered strong second-quarter results, exceeding expectations across all key financial metrics, driven by the continued momentum of its "Bold New Chapter" strategy. The company saw comparable sales growth across all nameplates and channels, with particular strength in its luxury segment and reimagined stores. Management raised its full-year outlook, reflecting confidence in its strategic initiatives and a balanced deployment of tariff refunds to both the bottom line and long-term investments.

Highlights

5

  • Macy's Inc. comparable sales grew 2.7% (2.8% on a go-forward basis), marking its fifth consecutive quarter of comp sales growth.

  • Macy's nameplate delivered its fifth consecutive quarter of positive comps, up 1.1%, with reimagined locations growing 1.9%.

  • Bloomingdale's achieved double-digit comparable sales growth of 11.3% for the second consecutive quarter, reaching its best second quarter sales volume on record.

  • Bluemercury delivered solid comparable sales growth of 6.2%, driven by in-store marketing and product performance.

  • Adjusted EPS of $0.63 exceeded guidance, and excluding the net tariff refund benefit, was 14% above the prior year.

Concerns

3

  • Softer trends were observed in plus sizes, intimates, and women's sleepwear.

  • The big ticket category remained soft versus the prior year, despite showing improvement compared to the prior quarter.

  • SG&A investments are anticipated to be higher in the third quarter to support Bold New Chapter initiatives.

Guidance & targets

CategoryTargetConfidence
Full-year Net Sales
$21.675 billion to $21.25 billion
high materiality
High
Full-year Comparable Sales
up 1.0% to up 1.5%
high materiality
High
Full-year Other Revenue
$920 million
medium materiality
High
Full-year Gross Margin as a percent of net sales
38.5% to 38.7%
high materiality
High
Full-year SG&A dollar growth
up 1.5% to 2.25%
medium materiality
High
Full-year Adjusted EBITDA as a percent of total revenue
7.8% to 8.0%
high materiality
High
Full-year Interest Expense
roughly $90 million
low materiality
High
Full-year Adjusted Diluted EPS
$2.15 to $2.35
high materiality
High
Q3 Net Sales
$4.65 billion to $4.7 billion
high materiality
High
Q3 Comparable Sales
down 0.5% to up 0.5%
high materiality
High
Q3 Adjusted EBITDA as a percent of total revenue
3.7% to 4.0%
medium materiality
High
Q3 Adjusted Diluted EPS
loss of $0.19 to $0.23
high materiality
High
Full-year combined tariff and fuel gross margin net headwind
5 to 15 basis points
medium materiality
High
Tariff refund flow-through to EPS
approximately $0.05
medium materiality
High
Tariff refund flow-through to EPS (net of reinvestment)
approximately $0.18
medium materiality
High

Segment performance

SegmentRevenueYoYQoQMargin
Macy's, Inc. (Total Company)
Exceeded guidance across all key financial metrics. Net sales grew 1.9% adjusting for store closures.
Total Revenue: $5.1 billionTotal Revenue Growth YoY: 1.2%Comparable Sales Growth (reported): 2.7%Comparable Sales Growth (go-forward): 2.8%
$4.9 billion1.1%——
Macy's Nameplate
Achieved its fifth consecutive quarter of positive comparable sales. Reimagined stores continue to outperform, contributing to a 10-point increase in total Macy's fleet NPS since strategy initiation.
Comparable Sales Growth: 1.1%Reimagined Locations Comp Growth: 1.9%Reimagined Locations as % of Go-Forward Stores: ~60%Reimagined Locations as % of Go-Forward Store Sales: 75%
————
Bloomingdale's
Delivered impressive double-digit comparable sales growth across all channels, markets, and categories. Growth seen in ready-to-wear, men's apparel, fine jewelry, fragrances, and tabletop.
Comparable Sales Growth: 11.3%Second Quarter Sales Volume: Highest on record (154-year history)
————
Bluemercury
Delivered solid comparable sales growth, driven by in-store marketing campaign 'summer party'. Growth led by dermatological skincare, makeup, and fragrances.
Comparable Sales Growth: 6.2%
————

M operating KPIs by quarter

M operating KPIs stated on its earnings calls, by fiscal quarter
KPI Apr 2026 Q1 FY27This call Jul 2026 Q2 FY27Change vs prior quarter
Stores Macy's go-forward
~350 comp sales include the approximately 350 Macy's go-forward locations in digital and Bloomingdale's and Bluemercury nameplates inclusive of stores and Digital. Source transcript
~350 comp sales include the approximately 350 go-forward store locations and digital for Macy's, which represents the Macy's go-forward nameplate, and all stores and digital for Bloomingdale's and Bluemercury, which represent their respective nameplates. Source transcript
—
Reimagine stores
200 During the first quarter, we expanded learnings to an additional 75 locations, bringing the Reimagine base to 200. Source transcript
200 Earlier this year, we expanded the program to 200 locations, which delivered comp growth of 1.9% in the second quarter. Source transcript
0%

Operating figures the company states on every call, checked against each call's transcript. Click a figure to read the sentence. A dash means it was not stated that quarter.

Product announcements

ProductTypeDetails
Kiko Milanolaunch
Happy Camp3r's Junior apparel linelaunch
Reis, Rod & Gun and BOSSexpansion
Ulla Johnson, Proenza Schouler and Dries Van Notenlaunch
James Perse, Chanel Fine jewelry and watches, Christian Louboutin and Prada shoesexpansion
Ask Macy's (AI-powered conversational shopping assistant)expansion
Bloomingdale's AI-powered conversational shopping assistantlaunch
Fall Fashion Campaign: Celebrate American Designerslaunch
Hotel Bloomingdale's Fall Campaignlaunch
Aqua collab with Nick Hiltonlaunch
Kurt Geigerlaunch
Tory Burchlaunch

Deals & partnerships

Ritz Carlton hotels Special partnership for Hotel Bloomingdale's fall campaign

Collaboration bringing together two iconic brands with a commitment to exceptional service and elevated experiences.

Risks & headwinds

Softer trends in specific categories Q2 FY27

Softer trends in plus sizes, intimates, and women's sleepwear. Big ticket category remains soft versus prior year.

Mitigation:Sharpening prices in big ticket categories (furniture, fine jewelry) using tariff refunds.

Uncertainty of fuel headwinds FY27

Anticipated full-year combined tariff and fuel gross margin net headwind of 5 to 15 basis points (revised down from 20-30 bps).

Mitigation:Portion of tariff refunds used to mitigate the uncertainty of fuel headwinds.

Potential changes in competitive landscape and consumer demand Near-term

Not quantified, but cited as a reason for a prudent approach to guidance.

Mitigation:Taking a prudent approach to guidance to maintain flexibility; focus on executing strategic initiatives for long-term growth.

What to watch in Q3 FY27

Reimagined Store Expansion Pacing

Q4 FY27 (piloting for 2027 expansion)
Current 200 locations, ~60% of go-forward stores, 75% of go-forward store sales
Target Expansion to additional stores in 2027, aiming for all go-forward fleet

Why it matters

The reimagined format has consistently driven comp growth and NPS improvement, making its broader rollout critical for overall Macy's performance.

We saved the fourth quarter call for the expansion of the store fleet, but you can based on our piloting of additional store initiatives in the fourth quarter that we're going to be adding more reimagined stores next year, and the aim will be to reimagine all of our go-forward fleet.

Q&A highlights

Why is the second half sales expectation flat despite Q2 outperformance, and what are the drivers for the Q3 comp guidance?

Management noted Q3 faces the strongest comp comparison of the year (3.2% on a 2-year stack) but expressed confidence in their strategy, team, and execution. They highlighted having raised guidance two quarters in a row, indicating strong business confidence, and confirmed second-half expectations are in line with prior outlook.

“We look at the third quarter as being the strongest comp that we're up against for the year, 3.2%. So there's actually a slight acceleration on a stack basis. That being said, there is nothing unusual unfolding about the quarter.”

asked by Blake Anderson · answered by Antony Spring

2 min read 6 chapters

Detailed narrative

Bold New Chapter Strategy Success

The company's "Bold New Chapter" strategy continues to gain momentum, reflected in six consecutive quarters of better-than-expected results, five consecutive quarters of comparable sales growth, and two consecutive quarters of net sales growth. This multi-brand, multi-category, and multichannel approach is proving effective, positioning the company for sustainable, long-term, profitable growth.

Reimagined Stores Outperformance and Expansion

The reimagined Macy's stores, now expanded to 200 locations, delivered 1.9% comp growth in Q2, consistently outperforming the rest of the fleet. These stores, accounting for nearly 60% of go-forward Macy's stores and 75% of Macy's go-forward store sales, show a 10-point increase in Net Promoter Score since the strategy's inception. The company plans to pilot additional store initiatives in Q4 for further expansion in 2027, aiming to reimagine all go-forward fleet locations.

Luxury Segment Strength

Bloomingdale's achieved its highest second-quarter sales volume in 154 years, with 11.3% comparable sales growth, driven by growth across all channels, markets, and categories. Bluemercury also contributed with 6.2% comparable sales growth, led by strong performance in dermatological skincare, makeup, and fragrances, including brands like SkinCeuticals, Victoria Beckham Beauty, La Mer, and Jo Malone.

Digital and AI Integration for Efficiency and Experience

Digital channels contributed positively to comparable sales, benefiting from improved branded assortments and growth in the Marketplace business. The company is expanding its AI-powered conversational shopping assistant, "Ask Macy's," to in-store colleagues and has launched a similar assistant for Bloomingdale's digital. AI is also being leveraged for inventory replenishment to improve in-stocks and deploy inventory more efficiently, with additional supply chain efficiencies expected in H2 FY27.

Enhanced Brand Curation and Assortment

Macy's continues to enhance brand offerings, adding new brands like Kiko Milano (exclusive U.S. launch) and Happy Camp3r's, and expanding distribution for others such as Reis, Rod & Gun, and BOSS. Bloomingdale's introduced Ulla Johnson, Proenza Schouler, and Dries Van Noten, and expanded distribution for James Perse, Chanel Fine jewelry and watches, Christian Louboutin, and Prada shoes. Outperformance was seen in watches, dresses, boutiques, career sportswear, kids, handbags, fragrances, and men's and women's shoes.

Consumer Resilience and Strategic Marketing Events

Consumers remained resilient and engaged in Q2, responding positively to newness and marketing events, particularly within the middle and upper-income segments. The company successfully hosted its 50th Macy's 4th of July fireworks, which saw a record 11 million viewers (up nearly 60% YoY). Upcoming events include the 100th Macy's Thanksgiving Day Parade and campaigns like "Hotel Bloomingdale's" with Ritz Carlton, designed to drive engagement and excitement.

AI-generated summary of the company's earnings call. Not investment advice.