Macy’s (M) Stock Is Falling After a Quarter That Actually Went Pretty Well

TLDR

• Macy’s posted adjusted EPS of 63 cents for Q2, well above the 37 cents Wall Street expected
• Net sales rose 1.1% to $4.87 billion, beating analyst forecasts of $4.81 billion
• Full-year guidance raised for the second time this year, now expecting adjusted EPS of $2.15 to $2.35
• Macy’s received $98 million in tariff refunds during the quarter, with 23 cents per share benefit recorded
• The stock dropped 4.7% in premarket trading to $20.50, falling below its 200-day moving average

Macy’s stock dropped 4.7% to $20.50 in premarket trading on Thursday, September 10, despite the company posting a strong second quarter and raising its full-year outlook for the second time this year.

Macy’s, Inc., M

The retailer reported adjusted earnings of 63 cents a share for the fiscal second quarter ended August 1. That beat Wall Street’s expectation of 37 cents by a wide margin. A year earlier, adjusted EPS was 35 cents.

Net sales came in at $4.87 billion, up 1.1% year over year and ahead of the analyst consensus of $4.81 billion.

Same-store sales across all Macy’s properties rose 2.7%. Analysts had only pencilled in 1% growth. That said, the pace did slow slightly from the 3% gain posted in Q1.

MACY'S $M Q2’26 EARNINGS HIGHLIGHTS

🔹 Revenue: $4.9B (Est. $4.83B) 🟢; +1.1% YoY
🔹 Adj. EPS: $0.63; incl. $0.23 tariff refunds
🔹 Adj. EPS ex-Refund: $0.40 (Est. $0.37) 🟢
🔹 GAAP EPS: $0.62; +100% YoY; incl. refunds
🔹 Adj. EBITDA: $457M; incl. tariff refunds

Raises FY26… pic.twitter.com/UmqCJJMtTQ

— Wall St Engine (@wallstengine) September 10, 2026

Bloomingdale’s was a standout. Same-store sales at the brand jumped 11.3%, with sales volume hitting its highest second-quarter level in the brand’s history. Bluemercury grew 6.2%, while the core Macy’s stores gained 1.1%.

Credit card net revenue also climbed, rising 2% to $156 million in the quarter.

Tariff Refunds Added a Boost

Macy’s recorded a tariff refund benefit of 23 cents a share in the quarter, which includes $98 million in refunds received during the period and another $18 million that arrived after the quarter closed.

About $20 million of those proceeds will flow through to full-year EPS. The remaining $96 million is being reinvested into the company’s multi-year turnaround strategy.

CEO Tony Spring said the company remains focused on “scaling what is resonating most with customers” and building a “durable foundation for sustainable, profitable growth.”

Guidance Gets a Second Lift

On the back of the solid quarter, Macy’s raised its full-year outlook. The company now expects adjusted EPS of $2.15 to $2.35, up from the prior range of $2.00 to $2.20.

Full-year net sales guidance was lifted to $21.68 billion to $21.83 billion, from the previous range of $21.5 billion to $21.75 billion.

Comparable sales are now expected to grow 1% to 1.5% for the full year, up from the prior forecast of 0.5% to 1.2%.

The midpoint of the new guidance came in just above the Wall Street consensus for both adjusted earnings and sales.

The stock had already fallen 4.2% in the prior session and closed below its 200-day moving average, near the $21.60 level, for the first time since May 19.

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