{"success":true,"data":{"pressRelease":{"id":"140097","rtpr_id":"nBwbCXSF9a-20260910","ticker":"M","exchange":"NYSE","all_tickers":["M"],"title":"Macy’s, Inc. Reports Strong Second Quarter 2026 Results With Continued Growth Across All Nameplates","author":"Business Wire","published_at":"2026-09-10T10:55:00.232Z","article_body":"Macy’s, Inc. Reports Strong Second Quarter 2026 Results With Continued\nGrowth Across All Nameplates\n\nMacy’s, Inc. delivered 2.7% comparable sales growth, exceeded its\nexpectations across all key metrics and raised its full-year top- and\nbottom-line guidance\n\nMacy’s comparable sales rose for the fifth consecutive quarter, led by\nReimagine 200 stores\n\nBloomingdale’s delivered second consecutive quarter of double-digit\ncomparable sales growth and its highest second-quarter sales volume\n\nGAAP EPS was up 100%; Adjusted EPS was up 14% excluding net tariff refund\nbenefit versus last year\n\nMacy’s, Inc. (NYSE: M) today reported financial results for the second\nquarter 2026 and raised its annual guidance.\n\nThis press release features multimedia. View the full release here:\nhttps://www.businesswire.com/news/home/20260910875611/en/\n(https://www.businesswire.com/news/home/20260910875611/en/)\n\nSecond Quarter 2026 Highlights\n\n\n * Macy’s, Inc. net sales of $4.9 billion increased 1.1% versus last year.\n\n * Macy’s, Inc. comparable sales(1) rose 2.7%, with go-forward(1,2) comparable\nsales up 2.8%.\n\n * Macy’s comparable sales rose 1.1%, with a 1.9% increase for Reimagine 200\nstores.\n\n * Bloomingdale’s comparable sales increased 11.3% and achieved its highest\nsecond-quarter sales volume in the brand’s history.\n\n * Bluemercury comparable sales increased 6.2%.\n\n * GAAP diluted EPS was $0.62, up 100%; Adjusted diluted EPS was $0.63, up 14%\nversus last year excluding a $0.23 net tariff refund benefit.\n\n“Our second-quarter performance builds on the progress our colleagues have\nconsistently delivered through our Bold New Chapter strategy,” said Tony\nSpring, chairman and chief executive officer of Macy’s, Inc. “The\ninvestments we're making are driving results across our portfolio, from the\ncontinued outperformance of our Reimagine 200 Macy’s stores, to meaningful\ndouble-digit growth at Bloomingdale’s and another solid quarter at\nBluemercury. As we enter the second half of the year, we remain focused on\nscaling what is resonating most with customers – exciting brands and\nassortments and compelling events and experiences. Combined with disciplined\nexecution, we expect these efforts to continue to build a durable foundation\nfor sustainable, profitable growth.”\n\nSecond Quarter 2026 Results(1) (comparisons are to the second quarter of 2025)\n\nMacy’s, Inc. net sales increased 1.1% to $4.9 billion. Net sales grew 1.9%\nexcluding the impact of fiscal 2025 store closures.(3)\n\nMacy’s, Inc. comparable sales rose 2.7% and were positive at each of the\ncompany’s nameplates.\n\nMacy’s, Inc. go-forward(1,2) business comparable sales increased 2.8%. By\nnameplate:\n\n\n * Macy’s comparable sales grew 1.1%.\n\n\n* Reimagine 200 locations comparable sales rose 1.9%.\n\n\n\n\n * Bloomingdale’s comparable sales grew 11.3%.\n\n * Bluemercury comparable sales increased 6.2%.\n\nOther revenue of $193 million increased $6 million, or 3.2%. Within other\nrevenue:\n\n\n * Credit card net revenues increased $3 million, or 2.0%, to $156 million,\nsupported by the company’s healthy credit portfolio and stable net credit\ncard losses.\n\n * Macy’s Media Network net revenue increased $3 million, or 8.8%, to $37\nmillion, reflecting partner engagement on the company’s advertising\nplatform.\n\nGross margin rate of 41.5% increased 180 basis points. Excluding a 180 basis\npoint benefit from net tariff refunds, partially offset by a 10 basis point\nheadwind from ongoing tariff and fuel costs, gross margin rate was up 10 basis\npoints.\n\nSelling, general and administrative (“SG&A”) expense as a percent of\ntotal revenue decreased 20 basis points to 38.7%. SG&A expense of $1.96\nbillion increased $16 million, reflecting higher variable costs driven by net\nsales growth as well as the company’s investments in Bold New Chapter\ninitiatives, partially offset by continued cost management efforts.\n\nGAAP net income was $169 million, or 3.3% of total revenue, and Adjusted net\nincome was $170 million, or 3.4% of total revenue. In the second quarter of\n2025, net income was $87 million, or 1.7% of total revenue, and Adjusted net\nincome was $98 million, or 2.0% of total revenue.\n\nGAAP and Adjusted diluted EPS were $0.62 and $0.63, respectively. These\ninclude a gross tariff refund benefit, less investments back into the\nbusiness, resulting in a net tariff refund benefit of $0.23 in the quarter. In\nthe second quarter of 2025, GAAP and Adjusted diluted EPS were $0.31 and\n$0.35, respectively.\n\nAdjusted earnings before interest, taxes, and depreciation and amortization\n(“EBITDA”) was $457 million, or 9.0% of total revenue. In the second\nquarter of 2025, Adjusted EBITDA was $373 million, or 7.5% of total revenue.\n\nBalance Sheet and Liquidity\n\nMerchandise inventories increased 2.5% year-over-year. The company believes\nthe composition and level of inventories are well-positioned heading into the\nsecond half of 2026.\n\nThe company ended the second quarter of 2026 with cash and cash equivalents of\n$1.3 billion versus $0.8 billion last year and had $2.0 billion of available\nborrowing capacity under its asset-based credit facility.\n\nAs of the end of the second quarter of 2026, total debt was $2.4 billion. The\ncompany has no material long-term debt maturities until 2030.\n\nTariff Refunds and Investments\n\nMacy’s, Inc. has received all expected International Emergency Economic\nPowers Act (“IEEPA”) tariff refunds including $98 million in the second\nquarter of 2026 and $18 million following the quarter end, for a total of $116\nmillion. The company is taking a balanced approach to deploying benefits.\nApproximately $20 million of proceeds will flow to full year EPS. The\nremaining refunds of $96 million are being invested in 2026 to deliver for our\ncustomer, further the Bold New Chapter strategy and support long-term growth.\n\nShareholder Returns\n\nThrough its quarterly dividend, the company returned $51 million in cash to\nshareholders in the second quarter of 2026 and $101 million in the first half\nof 2026. Additionally, on August 28, 2026, Macy’s, Inc.’s board of\ndirectors declared a regular quarterly dividend of 19.15 cents per share on\nMacy’s, Inc.’s common stock, payable on October 1, 2026 to shareholders of\nrecord at the close of business on September 15, 2026.\n\nDuring the second quarter of 2026, the company repurchased 2.2 million of its\nshares for $50 million, bringing total repurchases in the first half of 2026\nto 4.9 million shares for $100 million. The company had approximately $1.0\nbillion remaining under its $2.0 billion share repurchase authorization as of\nthe end of the second quarter of 2026.\n 1: Comparable sales refers to owned-plus-licensed-plus-marketplace sales. All reported nameplate comparable sales results are on a go-forward basis. \n 2: Inclusive of go-forward locations and digital, unless otherwise specified. For Macy’s, Inc. this reflects go-forward locations and digital across all three nameplates. \n 3: Fiscal 2025 store closures contributed approximately $35 million in the second quarter of 2025. \n\n\n2026 Guidance\n\nThe company raised its annual fiscal year 2026 guidance, including net sales,\ncomparable sales, adjusted EBITDA and adjusted diluted EPS guidance. Full year\nguidance continues to recognize that there are macroeconomic and geopolitical\nfactors that could influence discretionary spend. As such, the company\ncontinues to take a prudent approach to guidance, providing flexibility to\nrespond to changes in the competitive landscape and external environment.\n\nForward-looking guidance incorporates reinvestments of the majority of tariff\nrefunds with approximately $0.05 per share flowing through to full year\nadjusted diluted EPS. Tariff refunds net of reinvestment benefited adjusted\ndiluted EPS by $0.23 in the second quarter with approximately $0.18 per share\nof reinvestment in the second half incorporated in guidance. Additionally,\nguidance reflects planned investments in the company’s Reimagine 200\nlocations and luxury nameplates to support long-term top-line growth.\n\nThe full outlook for 2026, including the third quarter of 2026, can be found\nin the presentation posted to www.macysinc.com/investors\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.macysinc.com%2Finvestors&esheet=54601437&newsitemid=20260910875611&lan=en-US&anchor=www.macysinc.com%2Finvestors&index=1&md5=4010a0ce227d507013a787c416778a1d)\n. For Macy’s, Inc. the company expects:\n   Guidance as of Guidance as of \n \n \n \n \nSeptember 10, 2026 \nJune 3, 2026 \n Net sales(1) $21.675 billion to $21.825 billion $21.5 billion to $21.75 billion \n Comparable sales change(2) 1.0% to 1.5% 0.5% to 1.2% \n Adjusted EBITDA(3) as a percent of total revenue 7.8% to 8.0% 7.7% to 7.9% \n Adjusted diluted EPS(3,4) $2.15 to $2.35 $2.00 to $2.20 \n 1: Reflects the impact of fiscal 2025 store closures which contributed roughly \n $145 million of annual net sales. \n \n \n \n2: Comparable sales refers to owned-plus-licensed-plus-marketplace sales. \n \n \n \n3: Updated definitions to now exclude gains on sale of real estate and benefit \n plan income based on the company’s non-GAAP definitions as described in its \n Form 8-K filed on February 18, 2026. \n \n \n \n4: The impact of any potential future share repurchases associated with the \n company’s current share repurchase authorization is not considered within \n guidance. \n\n\nThe company does not provide reconciliations of the forward-looking non-GAAP\nmeasures of Adjusted EBITDA as a percent of total revenue and Adjusted diluted\nEPS to the most directly comparable forward-looking GAAP measures, and is\nunable to address the probable significance to future results of any items\nexcluded from these measures, because the timing and amount of excluded items\nare unreasonably difficult to fully and accurately estimate. See Important\nInformation Regarding Non-GAAP Financial Measures.\n\nConference Call and Webcast\n\nA webcast of Macy's, Inc.’s call with analysts and investors to report its\nsecond quarter of 2026 sales and earnings will be held today (September 10,\n2026) at 8:00 a.m. ET. Macy’s, Inc.’s webcast, along with the associated\npresentation, is accessible to the media and general public via the company's\nwebsite at www.macysinc.com\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.macysinc.com&esheet=54601437&newsitemid=20260910875611&lan=en-US&anchor=www.macysinc.com&index=2&md5=c01411f2255299f04f0e0bb49c7b866d)\n. Analysts and investors may call 1-877-407-0832. A replay of the conference\ncall will be available on the company’s website or by calling\n1-877-660-6853, using passcode 13761151, about two hours after the conclusion\nof the call. Additional information on Macy’s, Inc., including past news\nreleases, is available at www.macysinc.com/newsroom\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.macysinc.com%2Fnewsroom&esheet=54601437&newsitemid=20260910875611&lan=en-US&anchor=www.macysinc.com%2Fnewsroom&index=3&md5=fb83e25e92616eeaea87bc925f53474f)\n.\n\nImportant Information Regarding Non-GAAP Financial Measures\n\nPlease see the final pages of this news release for important information\nregarding the calculation of the company’s non-GAAP financial measures.\n\nAbout Macy’s, Inc.\n\nMacy’s, Inc. (NYSE: M) is a trusted source for quality brands through our\niconic nameplates – Macy’s, Bloomingdale’s and Bluemercury.\nHeadquartered in New York City, our comprehensive digital and nationwide\nfootprint empowers us to deliver a seamless shopping experience for our\ncustomers. For more information, visit macysinc.com.\n\nForward-Looking Statements\n\nAll statements in this press release that are not statements of historical\nfact are forward-looking statements within the meaning of the Private\nSecurities Litigation Reform Act of 1995. Such statements are based upon the\ncurrent beliefs and expectations of Macy’s management and are subject to\nsignificant risks and uncertainties. Actual results could differ materially\nfrom those expressed in or implied by the forward-looking statements contained\nin this release because of a variety of factors, including Macy’s ability to\nsuccessfully implement its Bold New Chapter strategy, including the ability to\nrealize the anticipated benefits associated with the strategy, competitive\npressures from specialty stores, general merchandise stores, off-price and\ndiscount stores, manufacturers’ outlets, the Internet and catalogs and\ngeneral consumer spending levels, including the impact of the availability and\nlevel of consumer debt, conditions to, or changes in the timing of proposed\nreal estate and other transactions, declines in credit card revenues, possible\nsystems failures and/or security breaches, business, legal and ethical\nchallenges related to use of artificial intelligence, Macy’s reliance on\nforeign sources of production, including risks related to the disruption of\nimports by labor disputes, regional or global health pandemics, regional\npolitical and economic conditions, the effect of potential changes to trade\npolicies, the effect of weather, inflation, inventory shortage, and labor\nshortages, the potential for the incurrence of charges in connection with the\nimpairment of tangible and intangible assets, including goodwill, the amount\nand timing of future dividends and share repurchases, and other factors\nidentified in documents filed by the company with the Securities and Exchange\nCommission, including under the captions “Forward-Looking Statements” and\n“Risk Factors” in the company’s Annual Report on Form 10-K for the year\nended January 31, 2026. Macy’s, Inc. disclaims any intention or obligation\nto update or revise any forward-looking statements, whether as a result of new\ninformation, future events or otherwise, except as required by law.\n MACY’S, INC. \n   \n Consolidated Statements of Income (Unaudited) (Note 1) \n (All amounts in millions except percentages and per share figures) \n   \n   13 Weeks Ended   13 Weeks Ended \n \n \n \n \nAugust 1, 2026 \nAugust 2, 2025 \n   $   % to   % to   $   % to   % to \n \nNet sales \nTotal revenue \nNet sales \nTotal revenue \n Net sales $ 4,866             $ 4,812           \n Other revenue (Note 2)   193     4.0 %         187     3.9 %     \n Total revenue   5,059               4,999           \n Cost of sales   (2,848 )   (58.5 %)         (2,900 )   (60.3 %)     \n Selling, general and administrative expenses   (1,960 )       (38.7 %)     (1,944 )       (38.9 %) \n Gains on sale of real estate   9         0.2 %     16         0.3 % \n Impairment, restructuring and other costs   (16 )       (0.3 %)     (22 )       (0.4 %) \n Operating income   244         4.8 %     149         3.0 % \n Benefit plan income, net   6               4           \n Interest expense, net   (23 )             (25 )         \n Loss on extinguishment of debt   —               (13 )         \n Income before income taxes   227               115           \n Federal, state and local income tax expense (Note 3)   (58 )             (28 )         \n Net income $ 169             $ 87           \n Basic earnings per share $ 0.64             $ 0.32           \n Diluted earnings per share $ 0.62             $ 0.31           \n Average common shares:                       \n Basic   263.6               271.8           \n Diluted   271.9               275.9           \n End of period common shares outstanding   261.8               267.6           \n Supplemental Financial Measures:                       \n Gross Margin (Note 4) $ 2,018     41.5 %       $ 1,912     39.7 %     \n Depreciation and amortization expense $ 206             $ 218           \n\n MACY’S, INC. \n   \n Consolidated Statements of Income (Unaudited) (Note 1) \n (All amounts in millions except percentages and per share figures) \n   \n   26 Weeks Ended   26 Weeks Ended \n \nAugust 1, 2026 \nAugust 2, 2025 \n   $   % to   % to   $   % to   % to \n \nNet sales \nTotal revenue \nNet sales \nTotal revenue \n Net sales $ 9,548             $ 9,411           \n Other revenue (Note 2)   403     4.2 %         380     4.0 %     \n Total revenue   9,951               9,791           \n Cost of sales   (5,708 )   (59.8 %)         (5,695 )   (60.5 %)     \n Selling, general and administrative expenses   (3,911 )       (39.3 %)     (3,856 )       (39.4 %) \n Gains on sale of real estate   23         0.2 %     32         0.3 % \n Impairment, restructuring and other benefits (costs)   1         — %     (30 )       (0.3 %) \n Operating income   356         3.6 %     242         2.5 % \n Benefit plan income, net   12               8           \n Interest expense, net   (48 )             (51 )         \n Loss on extinguishment of debt   —               (17 )         \n Income before income taxes   320               182           \n Federal, state and local income tax expense (Note 3)   (88 )             (58 )         \n Net income $ 232             $ 124           \n Basic earnings per share $ 0.88             $ 0.45           \n Diluted earnings per share $ 0.85             $ 0.44           \n Average common shares:                       \n Basic   264.0               274.7           \n Diluted   272.3               278.3           \n End of period common shares outstanding   261.8               267.6           \n Supplemental Financial Measures:                       \n Gross Margin (Notes 4) $ 3,840     40.2 %       $ 3,716     39.5 %     \n Depreciation and amortization expense $ 416             $ 437           \n\n MACY’S, INC. \n   \n Consolidated Balance Sheets (Unaudited) (Note 1) \n (millions) \n   \n   August 1,   January 31,   August 2, \n \n2026 \n2026 \n2025 \n ASSETS:           \n Current Assets:           \n Cash and cash equivalents $ 1,294   $ 1,246   $ 829 \n Receivables   236     628     211 \n Merchandise inventories   4,449     4,412     4,342 \n Prepaid expenses and other current assets   410     387     430 \n Income taxes receivable   —     —     13 \n Total Current Assets   6,389     6,673     5,825 \n Property and Equipment – net   4,565     4,743     4,903 \n Right of Use Assets   2,071     2,136     2,210 \n Goodwill   828     828     828 \n Other Intangible Assets – net   417     420     423 \n Other Assets   1,456     1,438     1,362 \n Total Assets $ 15,726   $ 16,238   $ 15,551 \n LIABILITIES AND SHAREHOLDERS’ EQUITY:           \n Current Liabilities:           \n Short-term debt $ —   $ —   $ 194 \n Merchandise accounts payable   1,826     1,807     1,818 \n Accounts payable and accrued liabilities   2,150     2,615     2,195 \n Income taxes payable   43     71     12 \n Total Current Liabilities   4,019     4,493     4,219 \n Long-Term Debt   2,433     2,432     2,432 \n Long-Term Lease Liabilities   2,656     2,772     2,855 \n Deferred Income Taxes   828     805     723 \n Other Liabilities   862     876     871 \n Shareholders' Equity   4,928     4,860     4,451 \n Total Liabilities and Shareholders’ Equity $ 15,726   $ 16,238   $ 15,551 \n\n MACY’S, INC. \n   \n Consolidated Statements of Cash Flows (Unaudited) (Notes 1 and 5) \n (millions) \n   \n   26 Weeks Ended   26 Weeks Ended \n \nAugust 1, 2026 \nAugust 2, 2025 \n Cash flows from operating activities:       \n Net income $ 232     $ 124   \n Adjustments to reconcile net income to net cash provided by operating       \n activities: \n Impairment, restructuring and other (benefits) costs   (1 )     30   \n Depreciation and amortization   416       437   \n Stock-based compensation expense   32       28   \n Gains on sale of real estate   (23 )     (32 ) \n Benefit plans   3       1   \n Amortization of financing costs and premium on acquired debt   3       6   \n Deferred income taxes   22       (1 ) \n Changes in assets and liabilities:       \n Decrease in receivables   382       92   \n (Increase) decrease in merchandise inventories   (37 )     123   \n Increase in prepaid expenses and other current assets   (28 )     (54 ) \n Increase (decrease) in merchandise accounts payable   47       (35 ) \n Decrease in accounts payable and accrued liabilities   (389 )     (405 ) \n (Decrease) increase in current income taxes   (17 )     9   \n Change in other assets and liabilities   (56 )     (68 ) \n Net cash provided by operating activities   586       255   \n Cash flows from investing activities:       \n Purchase of property and equipment   (153 )     (179 ) \n Capitalized software   (171 )     (164 ) \n Proceeds from disposition of assets, net   35       75   \n Other, net   3       6   \n Net cash used by investing activities   (286 )     (262 ) \n Cash flows from financing activities:       \n Debt issued   —       500   \n Debt issuance costs   —       (13 ) \n Debt repaid   (2 )     (651 ) \n Debt repurchase premium and expenses   —       (11 ) \n Dividends paid   (101 )     (100 ) \n Decrease in outstanding checks   (47 )     (47 ) \n Acquisition of treasury stock   (104 )     (149 ) \n Issuance of common stock, net   3       —   \n Net cash used by financing activities   (251 )     (471 ) \n Net increase (decrease) in cash, cash equivalents and restricted cash   49       (478 ) \n Cash, cash equivalents and restricted cash beginning of period   1,249       1,310   \n Cash, cash equivalents and restricted cash end of period $ 1,298     $ 832   \n\n MACY’S, INC. \n \n \n \n  \n \n \n \nConsolidated Financial Statements (Unaudited) \n   \n Notes: \n   \n (1) As a result of the seasonal nature of the retail business, the results of \n operations for the 13 and 26 weeks ended August 1, 2026 and August 2, 2025 \n (which do not include the Christmas season) are not necessarily indicative of \n such results for the fiscal year. \n (2) Other Revenue is inclusive of the following amounts. All amounts in millions \n except percentages. \n\n   13 Weeks Ended   13 Weeks Ended \n \n \n \n \nAugust 1, 2026 \nAugust 2, 2025 \n   $   % to   $   % to \n \nNet sales \nNet sales \n Credit card revenues, net $ 156   3.2 %   $ 153   3.2 % \n Macy's Media Network revenue, net   37   0.8 %     34   0.7 % \n Other Revenue $ 193   4.0 %   $ 187   3.9 % \n                 \n Net Sales $ 4,866       $ 4,812     \n                 \n   26 Weeks Ended   26 Weeks Ended \n \n \n \n \nAugust 1, 2026 \nAugust 2, 2025 \n   $   % to   $   % to \n \nNet sales \nNet sales \n Credit card revenues, net $ 328   3.4 %   $ 306   3.3 % \n Macy's Media Network revenue, net   75   0.8 %     74   0.8 % \n Other Revenue $ 403   4.2 %   $ 380   4.0 % \n                 \n Net Sales $ 9,548       $ 9,411     \n\n (3) The income tax expense of $58 million and $88 million, or 25.6% and 27.5% of \n pretax income, for the 13 and 26 weeks ended August 1, 2026, respectively, and \n income tax expense of $28 million and $58 million, or 24.3% and 31.9% of \n pretax income, for the 13 and 26 weeks ended August 2, 2025, respectively, \n reflect a different effective tax rate as compared to the Company’s federal \n income tax statutory rate of 21%. The income tax effective rates for the 13 \n weeks ended August 1, 2026 and August 2, 2025 were driven primarily by the \n impact of state and local taxes. The income tax effective rates for the 26 \n weeks ended August 1, 2026 and August 2, 2025 were driven primarily by the \n impact of state and local taxes and the vesting and cancellation of certain \n stock-based compensation awards. \n (4) Gross margin is defined as net sales less cost of sales. \n (5) Restricted cash of $4 million and $3 million is included within cash and cash \n equivalents as of August 1, 2026 and August 2, 2025, respectively. \n\n\nMACY’S, INC.\n\nImportant Information Regarding Non-GAAP Financial Measures\n\nThe company reports its financial results in accordance with U.S. generally\naccepted accounting principles (“GAAP”). However, management believes that\ncertain non-GAAP financial measures provide users of the company's financial\ninformation with additional useful information in evaluating operating\nperformance. Management believes that earnings before interest and taxes\n(“EBIT”) and earnings before interest, taxes, depreciation and\namortization (“EBITDA”), which are non-GAAP financial measures, provides\nmeaningful information about its operational efficiency by excluding the\nimpact of changes in tax law and structure, debt levels and capital\ninvestment. In addition, management believes that excluding certain items that\nare not associated with the company’s core operations and that may vary\nsubstantially in frequency and magnitude from period-to-period net income,\ndiluted earnings per share and EBITDA provides useful supplemental measures\nthat assist in evaluating the company's ability to generate earnings and\nleverage sales, respectively, and to more readily compare these metrics\nbetween past and future periods. Management also believes that Adjusted EBIT\nand Adjusted EBITDA are frequently used by investors and securities analysts\nin their evaluations of companies, and that such supplemental measures\nfacilitate comparisons between companies that have different capital and\nfinancing structures and/or tax rates. The Company uses certain non-GAAP\nfinancial measures as performance measures for components of executive\ncompensation.\n\nThe company does not provide reconciliations of the forward-looking non-GAAP\nmeasures of Adjusted EBITDA as a percent of total revenue and adjusted diluted\nearnings per share to the most directly comparable forward-looking GAAP\nmeasures, and is unable to address the probable significance to future results\nof any items excluded from these measures, because the timing and amount of\nexcluded items are unreasonably difficult to fully and accurately estimate.\n\nNon-GAAP financial measures should be viewed as supplementing, and not as an\nalternative or substitute for, the company's financial results prepared in\naccordance with GAAP. Certain of the items that may be excluded or included in\nnon-GAAP financial measures may be significant items that could impact the\ncompany's financial position, results of operations or cash flows and should\ntherefore be considered in assessing the company's actual and future financial\ncondition and performance. The methods used by the company to calculate its\nnon-GAAP financial measures may differ significantly from methods used by\nother companies to compute similar measures. As a result, any non-GAAP\nfinancial measures presented herein may not be comparable to similar measures\nprovided by other companies.\n\nNon-GAAP financial measures, excluding certain items below, are reconciled to\nthe most directly comparable GAAP measure as follows:\n\n\n * Adjusted EBIT and adjusted EBITDA are reconciled to GAAP net income.\n\n * Adjusted net income is reconciled to GAAP net income.\n\n * Adjusted diluted earnings per share is reconciled to GAAP diluted earnings per\nshare.\n Adjusted EBIT and Adjusted EBITDA \n (millions) \n   \n   13 Weeks Ended   13 Weeks Ended \n \n \n \n \nAugust 1, 2026 \nAugust 2, 2025 \n Net income $ 169     $ 87   \n Federal, state and local income tax expense   58       28   \n Interest expense, net   23       25   \n Loss on extinguishment of debt   —       13   \n Benefit plan income, net   (6 )     (4 ) \n Impairment, restructuring and other costs   16       22   \n Gains on sale of real estate   (9 )     (16 ) \n Adjusted EBIT   251       155   \n Depreciation and amortization   206       218   \n Adjusted EBITDA $ 457     $ 373   \n         \n   26 Weeks Ended   26 Weeks Ended \n \n \n \n \nAugust 1, 2026 \nAugust 2, 2025 \n Net income $ 232     $ 124   \n Federal, state and local income tax expense   88       58   \n Interest expense, net   48       51   \n Loss on extinguishment of debt   —       17   \n Benefit plan income, net   (12 )     (8 ) \n Impairment, restructuring and other (benefits) costs   (1 )     30   \n Gains on sale of real estate   (23 )     (32 ) \n Adjusted EBIT   332       240   \n Depreciation and amortization   416       437   \n Adjusted EBITDA $ 748     $ 677   \n\n Adjusted Net Income and Adjusted Diluted Earnings Per Share \n (All amounts in millions except per share figures) \n   \n   13 Weeks Ended   13 Weeks Ended \n \n \n \n \nAugust 1, 2026 \nAugust 2, 2025 \n   Net   Diluted   Net   Diluted \n \n \n \n \n \n \nIncome \nEarnings \nIncome \nEarnings \n \n \n \n \nPer Share \nPer Share \n As reported $ 169     $ 0.62     $ 87     $ 0.31   \n Loss on extinguishment of debt   —       —       13       0.05   \n Benefit plan income, net   (6 )     (0.02 )     (4 )     (0.01 ) \n Impairment, restructuring and other costs   16       0.06       22       0.08   \n Gains on sale of real estate   (9 )     (0.03 )     (16 )     (0.06 ) \n Income tax impact of items identified above   —       —       (4 )     (0.02 ) \n As adjusted to exclude items above $ 170     $ 0.63     $ 98     $ 0.35   \n Net tariff refund benefit   (84 )     (0.31 )     —       —   \n Income tax impact of net tariff refund benefit   21       0.08       —       —   \n As adjusted to exclude the impact of the net tariff refund benefit, net of tax $ 107     $ 0.40     $ 98     $ 0.35   \n                 \n   26 Weeks Ended   26 Weeks Ended \n \n \n \n \nAugust 1, 2026 \nAugust 2, 2025 \n   Net   Diluted   Net   Diluted \n \n \n \n \n \n \nIncome \nEarnings \nIncome \nEarnings \n \n \n \n \nPer Share \nPer Share \n As reported $ 232     $ 0.85     $ 124     $ 0.44   \n Loss on extinguishment of debt   —       —       17       0.06   \n Benefit plan income, net   (12 )     (0.04 )     (8 )     (0.02 ) \n Impairment, restructuring and other (benefits) costs   (1 )     —       30       0.11   \n Gains on sale of real estate   (23 )     (0.09 )     (32 )     (0.12 ) \n Income tax impact of items identified above   9       0.03       (2 )     (0.01 ) \n As adjusted to exclude items above $ 205     $ 0.75     $ 129     $ 0.46   \n\n\n \n\n\n\nView source version on businesswire.com:\nhttps://www.businesswire.com/news/home/20260910875611/en/\n(https://www.businesswire.com/news/home/20260910875611/en/)\n\nMedia – Chris Grams \n\ncommunications@macys.com (mailto:communications@macys.com)\n\nInvestors – Caitlin Howe \n\ninvestors@macys.com (mailto:investors@macys.com)\n\n\nCopyright Business Wire 2026","article_body_html":"","raw_payload":{"data":{"id":"nBwbCXSF9a-20260910","title":"Macy’s, Inc. Reports Strong Second Quarter 2026 Results With Continued Growth Across All Nameplates","author":"Business Wire","ticker":"M","created":"2026-09-10T10:55:00.232Z","tickers":["M"],"exchange":"NYSE","article_body":"Macy’s, Inc. Reports Strong Second Quarter 2026 Results With Continued\nGrowth Across All Nameplates\n\nMacy’s, Inc. delivered 2.7% comparable sales growth, exceeded its\nexpectations across all key metrics and raised its full-year top- and\nbottom-line guidance\n\nMacy’s comparable sales rose for the fifth consecutive quarter, led by\nReimagine 200 stores\n\nBloomingdale’s delivered second consecutive quarter of double-digit\ncomparable sales growth and its highest second-quarter sales volume\n\nGAAP EPS was up 100%; Adjusted EPS was up 14% excluding net tariff refund\nbenefit versus last year\n\nMacy’s, Inc. (NYSE: M) today reported financial results for the second\nquarter 2026 and raised its annual guidance.\n\nThis press release features multimedia. View the full release here:\nhttps://www.businesswire.com/news/home/20260910875611/en/\n(https://www.businesswire.com/news/home/20260910875611/en/)\n\nSecond Quarter 2026 Highlights\n\n\n * Macy’s, Inc. net sales of $4.9 billion increased 1.1% versus last year.\n\n * Macy’s, Inc. comparable sales(1) rose 2.7%, with go-forward(1,2) comparable\nsales up 2.8%.\n\n * Macy’s comparable sales rose 1.1%, with a 1.9% increase for Reimagine 200\nstores.\n\n * Bloomingdale’s comparable sales increased 11.3% and achieved its highest\nsecond-quarter sales volume in the brand’s history.\n\n * Bluemercury comparable sales increased 6.2%.\n\n * GAAP diluted EPS was $0.62, up 100%; Adjusted diluted EPS was $0.63, up 14%\nversus last year excluding a $0.23 net tariff refund benefit.\n\n“Our second-quarter performance builds on the progress our colleagues have\nconsistently delivered through our Bold New Chapter strategy,” said Tony\nSpring, chairman and chief executive officer of Macy’s, Inc. “The\ninvestments we're making are driving results across our portfolio, from the\ncontinued outperformance of our Reimagine 200 Macy’s stores, to meaningful\ndouble-digit growth at Bloomingdale’s and another solid quarter at\nBluemercury. As we enter the second half of the year, we remain focused on\nscaling what is resonating most with customers – exciting brands and\nassortments and compelling events and experiences. Combined with disciplined\nexecution, we expect these efforts to continue to build a durable foundation\nfor sustainable, profitable growth.”\n\nSecond Quarter 2026 Results(1) (comparisons are to the second quarter of 2025)\n\nMacy’s, Inc. net sales increased 1.1% to $4.9 billion. Net sales grew 1.9%\nexcluding the impact of fiscal 2025 store closures.(3)\n\nMacy’s, Inc. comparable sales rose 2.7% and were positive at each of the\ncompany’s nameplates.\n\nMacy’s, Inc. go-forward(1,2) business comparable sales increased 2.8%. By\nnameplate:\n\n\n * Macy’s comparable sales grew 1.1%.\n\n\n* Reimagine 200 locations comparable sales rose 1.9%.\n\n\n\n\n * Bloomingdale’s comparable sales grew 11.3%.\n\n * Bluemercury comparable sales increased 6.2%.\n\nOther revenue of $193 million increased $6 million, or 3.2%. Within other\nrevenue:\n\n\n * Credit card net revenues increased $3 million, or 2.0%, to $156 million,\nsupported by the company’s healthy credit portfolio and stable net credit\ncard losses.\n\n * Macy’s Media Network net revenue increased $3 million, or 8.8%, to $37\nmillion, reflecting partner engagement on the company’s advertising\nplatform.\n\nGross margin rate of 41.5% increased 180 basis points. Excluding a 180 basis\npoint benefit from net tariff refunds, partially offset by a 10 basis point\nheadwind from ongoing tariff and fuel costs, gross margin rate was up 10 basis\npoints.\n\nSelling, general and administrative (“SG&A”) expense as a percent of\ntotal revenue decreased 20 basis points to 38.7%. SG&A expense of $1.96\nbillion increased $16 million, reflecting higher variable costs driven by net\nsales growth as well as the company’s investments in Bold New Chapter\ninitiatives, partially offset by continued cost management efforts.\n\nGAAP net income was $169 million, or 3.3% of total revenue, and Adjusted net\nincome was $170 million, or 3.4% of total revenue. In the second quarter of\n2025, net income was $87 million, or 1.7% of total revenue, and Adjusted net\nincome was $98 million, or 2.0% of total revenue.\n\nGAAP and Adjusted diluted EPS were $0.62 and $0.63, respectively. These\ninclude a gross tariff refund benefit, less investments back into the\nbusiness, resulting in a net tariff refund benefit of $0.23 in the quarter. In\nthe second quarter of 2025, GAAP and Adjusted diluted EPS were $0.31 and\n$0.35, respectively.\n\nAdjusted earnings before interest, taxes, and depreciation and amortization\n(“EBITDA”) was $457 million, or 9.0% of total revenue. In the second\nquarter of 2025, Adjusted EBITDA was $373 million, or 7.5% of total revenue.\n\nBalance Sheet and Liquidity\n\nMerchandise inventories increased 2.5% year-over-year. The company believes\nthe composition and level of inventories are well-positioned heading into the\nsecond half of 2026.\n\nThe company ended the second quarter of 2026 with cash and cash equivalents of\n$1.3 billion versus $0.8 billion last year and had $2.0 billion of available\nborrowing capacity under its asset-based credit facility.\n\nAs of the end of the second quarter of 2026, total debt was $2.4 billion. The\ncompany has no material long-term debt maturities until 2030.\n\nTariff Refunds and Investments\n\nMacy’s, Inc. has received all expected International Emergency Economic\nPowers Act (“IEEPA”) tariff refunds including $98 million in the second\nquarter of 2026 and $18 million following the quarter end, for a total of $116\nmillion. The company is taking a balanced approach to deploying benefits.\nApproximately $20 million of proceeds will flow to full year EPS. The\nremaining refunds of $96 million are being invested in 2026 to deliver for our\ncustomer, further the Bold New Chapter strategy and support long-term growth.\n\nShareholder Returns\n\nThrough its quarterly dividend, the company returned $51 million in cash to\nshareholders in the second quarter of 2026 and $101 million in the first half\nof 2026. Additionally, on August 28, 2026, Macy’s, Inc.’s board of\ndirectors declared a regular quarterly dividend of 19.15 cents per share on\nMacy’s, Inc.’s common stock, payable on October 1, 2026 to shareholders of\nrecord at the close of business on September 15, 2026.\n\nDuring the second quarter of 2026, the company repurchased 2.2 million of its\nshares for $50 million, bringing total repurchases in the first half of 2026\nto 4.9 million shares for $100 million. The company had approximately $1.0\nbillion remaining under its $2.0 billion share repurchase authorization as of\nthe end of the second quarter of 2026.\n 1: Comparable sales refers to owned-plus-licensed-plus-marketplace sales. All reported nameplate comparable sales results are on a go-forward basis. \n 2: Inclusive of go-forward locations and digital, unless otherwise specified. For Macy’s, Inc. this reflects go-forward locations and digital across all three nameplates. \n 3: Fiscal 2025 store closures contributed approximately $35 million in the second quarter of 2025. \n\n\n2026 Guidance\n\nThe company raised its annual fiscal year 2026 guidance, including net sales,\ncomparable sales, adjusted EBITDA and adjusted diluted EPS guidance. Full year\nguidance continues to recognize that there are macroeconomic and geopolitical\nfactors that could influence discretionary spend. As such, the company\ncontinues to take a prudent approach to guidance, providing flexibility to\nrespond to changes in the competitive landscape and external environment.\n\nForward-looking guidance incorporates reinvestments of the majority of tariff\nrefunds with approximately $0.05 per share flowing through to full year\nadjusted diluted EPS. Tariff refunds net of reinvestment benefited adjusted\ndiluted EPS by $0.23 in the second quarter with approximately $0.18 per share\nof reinvestment in the second half incorporated in guidance. Additionally,\nguidance reflects planned investments in the company’s Reimagine 200\nlocations and luxury nameplates to support long-term top-line growth.\n\nThe full outlook for 2026, including the third quarter of 2026, can be found\nin the presentation posted to www.macysinc.com/investors\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.macysinc.com%2Finvestors&esheet=54601437&newsitemid=20260910875611&lan=en-US&anchor=www.macysinc.com%2Finvestors&index=1&md5=4010a0ce227d507013a787c416778a1d)\n. For Macy’s, Inc. the company expects:\n   Guidance as of Guidance as of \n \n \n \n \nSeptember 10, 2026 \nJune 3, 2026 \n Net sales(1) $21.675 billion to $21.825 billion $21.5 billion to $21.75 billion \n Comparable sales change(2) 1.0% to 1.5% 0.5% to 1.2% \n Adjusted EBITDA(3) as a percent of total revenue 7.8% to 8.0% 7.7% to 7.9% \n Adjusted diluted EPS(3,4) $2.15 to $2.35 $2.00 to $2.20 \n 1: Reflects the impact of fiscal 2025 store closures which contributed roughly \n $145 million of annual net sales. \n \n \n \n2: Comparable sales refers to owned-plus-licensed-plus-marketplace sales. \n \n \n \n3: Updated definitions to now exclude gains on sale of real estate and benefit \n plan income based on the company’s non-GAAP definitions as described in its \n Form 8-K filed on February 18, 2026. \n \n \n \n4: The impact of any potential future share repurchases associated with the \n company’s current share repurchase authorization is not considered within \n guidance. \n\n\nThe company does not provide reconciliations of the forward-looking non-GAAP\nmeasures of Adjusted EBITDA as a percent of total revenue and Adjusted diluted\nEPS to the most directly comparable forward-looking GAAP measures, and is\nunable to address the probable significance to future results of any items\nexcluded from these measures, because the timing and amount of excluded items\nare unreasonably difficult to fully and accurately estimate. See Important\nInformation Regarding Non-GAAP Financial Measures.\n\nConference Call and Webcast\n\nA webcast of Macy's, Inc.’s call with analysts and investors to report its\nsecond quarter of 2026 sales and earnings will be held today (September 10,\n2026) at 8:00 a.m. ET. Macy’s, Inc.’s webcast, along with the associated\npresentation, is accessible to the media and general public via the company's\nwebsite at www.macysinc.com\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.macysinc.com&esheet=54601437&newsitemid=20260910875611&lan=en-US&anchor=www.macysinc.com&index=2&md5=c01411f2255299f04f0e0bb49c7b866d)\n. Analysts and investors may call 1-877-407-0832. A replay of the conference\ncall will be available on the company’s website or by calling\n1-877-660-6853, using passcode 13761151, about two hours after the conclusion\nof the call. Additional information on Macy’s, Inc., including past news\nreleases, is available at www.macysinc.com/newsroom\n(https://cts.businesswire.com/ct/CT?id=smartlink&url=http%3A%2F%2Fwww.macysinc.com%2Fnewsroom&esheet=54601437&newsitemid=20260910875611&lan=en-US&anchor=www.macysinc.com%2Fnewsroom&index=3&md5=fb83e25e92616eeaea87bc925f53474f)\n.\n\nImportant Information Regarding Non-GAAP Financial Measures\n\nPlease see the final pages of this news release for important information\nregarding the calculation of the company’s non-GAAP financial measures.\n\nAbout Macy’s, Inc.\n\nMacy’s, Inc. (NYSE: M) is a trusted source for quality brands through our\niconic nameplates – Macy’s, Bloomingdale’s and Bluemercury.\nHeadquartered in New York City, our comprehensive digital and nationwide\nfootprint empowers us to deliver a seamless shopping experience for our\ncustomers. For more information, visit macysinc.com.\n\nForward-Looking Statements\n\nAll statements in this press release that are not statements of historical\nfact are forward-looking statements within the meaning of the Private\nSecurities Litigation Reform Act of 1995. Such statements are based upon the\ncurrent beliefs and expectations of Macy’s management and are subject to\nsignificant risks and uncertainties. Actual results could differ materially\nfrom those expressed in or implied by the forward-looking statements contained\nin this release because of a variety of factors, including Macy’s ability to\nsuccessfully implement its Bold New Chapter strategy, including the ability to\nrealize the anticipated benefits associated with the strategy, competitive\npressures from specialty stores, general merchandise stores, off-price and\ndiscount stores, manufacturers’ outlets, the Internet and catalogs and\ngeneral consumer spending levels, including the impact of the availability and\nlevel of consumer debt, conditions to, or changes in the timing of proposed\nreal estate and other transactions, declines in credit card revenues, possible\nsystems failures and/or security breaches, business, legal and ethical\nchallenges related to use of artificial intelligence, Macy’s reliance on\nforeign sources of production, including risks related to the disruption of\nimports by labor disputes, regional or global health pandemics, regional\npolitical and economic conditions, the effect of potential changes to trade\npolicies, the effect of weather, inflation, inventory shortage, and labor\nshortages, the potential for the incurrence of charges in connection with the\nimpairment of tangible and intangible assets, including goodwill, the amount\nand timing of future dividends and share repurchases, and other factors\nidentified in documents filed by the company with the Securities and Exchange\nCommission, including under the captions “Forward-Looking Statements” and\n“Risk Factors” in the company’s Annual Report on Form 10-K for the year\nended January 31, 2026. Macy’s, Inc. disclaims any intention or obligation\nto update or revise any forward-looking statements, whether as a result of new\ninformation, future events or otherwise, except as required by law.\n MACY’S, INC. \n   \n Consolidated Statements of Income (Unaudited) (Note 1) \n (All amounts in millions except percentages and per share figures) \n   \n   13 Weeks Ended   13 Weeks Ended \n \n \n \n \nAugust 1, 2026 \nAugust 2, 2025 \n   $   % to   % to   $   % to   % to \n \nNet sales \nTotal revenue \nNet sales \nTotal revenue \n Net sales $ 4,866             $ 4,812           \n Other revenue (Note 2)   193     4.0 %         187     3.9 %     \n Total revenue   5,059               4,999           \n Cost of sales   (2,848 )   (58.5 %)         (2,900 )   (60.3 %)     \n Selling, general and administrative expenses   (1,960 )       (38.7 %)     (1,944 )       (38.9 %) \n Gains on sale of real estate   9         0.2 %     16         0.3 % \n Impairment, restructuring and other costs   (16 )       (0.3 %)     (22 )       (0.4 %) \n Operating income   244         4.8 %     149         3.0 % \n Benefit plan income, net   6               4           \n Interest expense, net   (23 )             (25 )         \n Loss on extinguishment of debt   —               (13 )         \n Income before income taxes   227               115           \n Federal, state and local income tax expense (Note 3)   (58 )             (28 )         \n Net income $ 169             $ 87           \n Basic earnings per share $ 0.64             $ 0.32           \n Diluted earnings per share $ 0.62             $ 0.31           \n Average common shares:                       \n Basic   263.6               271.8           \n Diluted   271.9               275.9           \n End of period common shares outstanding   261.8               267.6           \n Supplemental Financial Measures:                       \n Gross Margin (Note 4) $ 2,018     41.5 %       $ 1,912     39.7 %     \n Depreciation and amortization expense $ 206             $ 218           \n\n MACY’S, INC. \n   \n Consolidated Statements of Income (Unaudited) (Note 1) \n (All amounts in millions except percentages and per share figures) \n   \n   26 Weeks Ended   26 Weeks Ended \n \nAugust 1, 2026 \nAugust 2, 2025 \n   $   % to   % to   $   % to   % to \n \nNet sales \nTotal revenue \nNet sales \nTotal revenue \n Net sales $ 9,548             $ 9,411           \n Other revenue (Note 2)   403     4.2 %         380     4.0 %     \n Total revenue   9,951               9,791           \n Cost of sales   (5,708 )   (59.8 %)         (5,695 )   (60.5 %)     \n Selling, general and administrative expenses   (3,911 )       (39.3 %)     (3,856 )       (39.4 %) \n Gains on sale of real estate   23         0.2 %     32         0.3 % \n Impairment, restructuring and other benefits (costs)   1         — %     (30 )       (0.3 %) \n Operating income   356         3.6 %     242         2.5 % \n Benefit plan income, net   12               8           \n Interest expense, net   (48 )             (51 )         \n Loss on extinguishment of debt   —               (17 )         \n Income before income taxes   320               182           \n Federal, state and local income tax expense (Note 3)   (88 )             (58 )         \n Net income $ 232             $ 124           \n Basic earnings per share $ 0.88             $ 0.45           \n Diluted earnings per share $ 0.85             $ 0.44           \n Average common shares:                       \n Basic   264.0               274.7           \n Diluted   272.3               278.3           \n End of period common shares outstanding   261.8               267.6           \n Supplemental Financial Measures:                       \n Gross Margin (Notes 4) $ 3,840     40.2 %       $ 3,716     39.5 %     \n Depreciation and amortization expense $ 416             $ 437           \n\n MACY’S, INC. \n   \n Consolidated Balance Sheets (Unaudited) (Note 1) \n (millions) \n   \n   August 1,   January 31,   August 2, \n \n2026 \n2026 \n2025 \n ASSETS:           \n Current Assets:           \n Cash and cash equivalents $ 1,294   $ 1,246   $ 829 \n Receivables   236     628     211 \n Merchandise inventories   4,449     4,412     4,342 \n Prepaid expenses and other current assets   410     387     430 \n Income taxes receivable   —     —     13 \n Total Current Assets   6,389     6,673     5,825 \n Property and Equipment – net   4,565     4,743     4,903 \n Right of Use Assets   2,071     2,136     2,210 \n Goodwill   828     828     828 \n Other Intangible Assets – net   417     420     423 \n Other Assets   1,456     1,438     1,362 \n Total Assets $ 15,726   $ 16,238   $ 15,551 \n LIABILITIES AND SHAREHOLDERS’ EQUITY:           \n Current Liabilities:           \n Short-term debt $ —   $ —   $ 194 \n Merchandise accounts payable   1,826     1,807     1,818 \n Accounts payable and accrued liabilities   2,150     2,615     2,195 \n Income taxes payable   43     71     12 \n Total Current Liabilities   4,019     4,493     4,219 \n Long-Term Debt   2,433     2,432     2,432 \n Long-Term Lease Liabilities   2,656     2,772     2,855 \n Deferred Income Taxes   828     805     723 \n Other Liabilities   862     876     871 \n Shareholders' Equity   4,928     4,860     4,451 \n Total Liabilities and Shareholders’ Equity $ 15,726   $ 16,238   $ 15,551 \n\n MACY’S, INC. \n   \n Consolidated Statements of Cash Flows (Unaudited) (Notes 1 and 5) \n (millions) \n   \n   26 Weeks Ended   26 Weeks Ended \n \nAugust 1, 2026 \nAugust 2, 2025 \n Cash flows from operating activities:       \n Net income $ 232     $ 124   \n Adjustments to reconcile net income to net cash provided by operating       \n activities: \n Impairment, restructuring and other (benefits) costs   (1 )     30   \n Depreciation and amortization   416       437   \n Stock-based compensation expense   32       28   \n Gains on sale of real estate   (23 )     (32 ) \n Benefit plans   3       1   \n Amortization of financing costs and premium on acquired debt   3       6   \n Deferred income taxes   22       (1 ) \n Changes in assets and liabilities:       \n Decrease in receivables   382       92   \n (Increase) decrease in merchandise inventories   (37 )     123   \n Increase in prepaid expenses and other current assets   (28 )     (54 ) \n Increase (decrease) in merchandise accounts payable   47       (35 ) \n Decrease in accounts payable and accrued liabilities   (389 )     (405 ) \n (Decrease) increase in current income taxes   (17 )     9   \n Change in other assets and liabilities   (56 )     (68 ) \n Net cash provided by operating activities   586       255   \n Cash flows from investing activities:       \n Purchase of property and equipment   (153 )     (179 ) \n Capitalized software   (171 )     (164 ) \n Proceeds from disposition of assets, net   35       75   \n Other, net   3       6   \n Net cash used by investing activities   (286 )     (262 ) \n Cash flows from financing activities:       \n Debt issued   —       500   \n Debt issuance costs   —       (13 ) \n Debt repaid   (2 )     (651 ) \n Debt repurchase premium and expenses   —       (11 ) \n Dividends paid   (101 )     (100 ) \n Decrease in outstanding checks   (47 )     (47 ) \n Acquisition of treasury stock   (104 )     (149 ) \n Issuance of common stock, net   3       —   \n Net cash used by financing activities   (251 )     (471 ) \n Net increase (decrease) in cash, cash equivalents and restricted cash   49       (478 ) \n Cash, cash equivalents and restricted cash beginning of period   1,249       1,310   \n Cash, cash equivalents and restricted cash end of period $ 1,298     $ 832   \n\n MACY’S, INC. \n \n \n \n  \n \n \n \nConsolidated Financial Statements (Unaudited) \n   \n Notes: \n   \n (1) As a result of the seasonal nature of the retail business, the results of \n operations for the 13 and 26 weeks ended August 1, 2026 and August 2, 2025 \n (which do not include the Christmas season) are not necessarily indicative of \n such results for the fiscal year. \n (2) Other Revenue is inclusive of the following amounts. All amounts in millions \n except percentages. \n\n   13 Weeks Ended   13 Weeks Ended \n \n \n \n \nAugust 1, 2026 \nAugust 2, 2025 \n   $   % to   $   % to \n \nNet sales \nNet sales \n Credit card revenues, net $ 156   3.2 %   $ 153   3.2 % \n Macy's Media Network revenue, net   37   0.8 %     34   0.7 % \n Other Revenue $ 193   4.0 %   $ 187   3.9 % \n                 \n Net Sales $ 4,866       $ 4,812     \n                 \n   26 Weeks Ended   26 Weeks Ended \n \n \n \n \nAugust 1, 2026 \nAugust 2, 2025 \n   $   % to   $   % to \n \nNet sales \nNet sales \n Credit card revenues, net $ 328   3.4 %   $ 306   3.3 % \n Macy's Media Network revenue, net   75   0.8 %     74   0.8 % \n Other Revenue $ 403   4.2 %   $ 380   4.0 % \n                 \n Net Sales $ 9,548       $ 9,411     \n\n (3) The income tax expense of $58 million and $88 million, or 25.6% and 27.5% of \n pretax income, for the 13 and 26 weeks ended August 1, 2026, respectively, and \n income tax expense of $28 million and $58 million, or 24.3% and 31.9% of \n pretax income, for the 13 and 26 weeks ended August 2, 2025, respectively, \n reflect a different effective tax rate as compared to the Company’s federal \n income tax statutory rate of 21%. The income tax effective rates for the 13 \n weeks ended August 1, 2026 and August 2, 2025 were driven primarily by the \n impact of state and local taxes. The income tax effective rates for the 26 \n weeks ended August 1, 2026 and August 2, 2025 were driven primarily by the \n impact of state and local taxes and the vesting and cancellation of certain \n stock-based compensation awards. \n (4) Gross margin is defined as net sales less cost of sales. \n (5) Restricted cash of $4 million and $3 million is included within cash and cash \n equivalents as of August 1, 2026 and August 2, 2025, respectively. \n\n\nMACY’S, INC.\n\nImportant Information Regarding Non-GAAP Financial Measures\n\nThe company reports its financial results in accordance with U.S. generally\naccepted accounting principles (“GAAP”). However, management believes that\ncertain non-GAAP financial measures provide users of the company's financial\ninformation with additional useful information in evaluating operating\nperformance. Management believes that earnings before interest and taxes\n(“EBIT”) and earnings before interest, taxes, depreciation and\namortization (“EBITDA”), which are non-GAAP financial measures, provides\nmeaningful information about its operational efficiency by excluding the\nimpact of changes in tax law and structure, debt levels and capital\ninvestment. In addition, management believes that excluding certain items that\nare not associated with the company’s core operations and that may vary\nsubstantially in frequency and magnitude from period-to-period net income,\ndiluted earnings per share and EBITDA provides useful supplemental measures\nthat assist in evaluating the company's ability to generate earnings and\nleverage sales, respectively, and to more readily compare these metrics\nbetween past and future periods. Management also believes that Adjusted EBIT\nand Adjusted EBITDA are frequently used by investors and securities analysts\nin their evaluations of companies, and that such supplemental measures\nfacilitate comparisons between companies that have different capital and\nfinancing structures and/or tax rates. The Company uses certain non-GAAP\nfinancial measures as performance measures for components of executive\ncompensation.\n\nThe company does not provide reconciliations of the forward-looking non-GAAP\nmeasures of Adjusted EBITDA as a percent of total revenue and adjusted diluted\nearnings per share to the most directly comparable forward-looking GAAP\nmeasures, and is unable to address the probable significance to future results\nof any items excluded from these measures, because the timing and amount of\nexcluded items are unreasonably difficult to fully and accurately estimate.\n\nNon-GAAP financial measures should be viewed as supplementing, and not as an\nalternative or substitute for, the company's financial results prepared in\naccordance with GAAP. Certain of the items that may be excluded or included in\nnon-GAAP financial measures may be significant items that could impact the\ncompany's financial position, results of operations or cash flows and should\ntherefore be considered in assessing the company's actual and future financial\ncondition and performance. The methods used by the company to calculate its\nnon-GAAP financial measures may differ significantly from methods used by\nother companies to compute similar measures. As a result, any non-GAAP\nfinancial measures presented herein may not be comparable to similar measures\nprovided by other companies.\n\nNon-GAAP financial measures, excluding certain items below, are reconciled to\nthe most directly comparable GAAP measure as follows:\n\n\n * Adjusted EBIT and adjusted EBITDA are reconciled to GAAP net income.\n\n * Adjusted net income is reconciled to GAAP net income.\n\n * Adjusted diluted earnings per share is reconciled to GAAP diluted earnings per\nshare.\n Adjusted EBIT and Adjusted EBITDA \n (millions) \n   \n   13 Weeks Ended   13 Weeks Ended \n \n \n \n \nAugust 1, 2026 \nAugust 2, 2025 \n Net income $ 169     $ 87   \n Federal, state and local income tax expense   58       28   \n Interest expense, net   23       25   \n Loss on extinguishment of debt   —       13   \n Benefit plan income, net   (6 )     (4 ) \n Impairment, restructuring and other costs   16       22   \n Gains on sale of real estate   (9 )     (16 ) \n Adjusted EBIT   251       155   \n Depreciation and amortization   206       218   \n Adjusted EBITDA $ 457     $ 373   \n         \n   26 Weeks Ended   26 Weeks Ended \n \n \n \n \nAugust 1, 2026 \nAugust 2, 2025 \n Net income $ 232     $ 124   \n Federal, state and local income tax expense   88       58   \n Interest expense, net   48       51   \n Loss on extinguishment of debt   —       17   \n Benefit plan income, net   (12 )     (8 ) \n Impairment, restructuring and other (benefits) costs   (1 )     30   \n Gains on sale of real estate   (23 )     (32 ) \n Adjusted EBIT   332       240   \n Depreciation and amortization   416       437   \n Adjusted EBITDA $ 748     $ 677   \n\n Adjusted Net Income and Adjusted Diluted Earnings Per Share \n (All amounts in millions except per share figures) \n   \n   13 Weeks Ended   13 Weeks Ended \n \n \n \n \nAugust 1, 2026 \nAugust 2, 2025 \n   Net   Diluted   Net   Diluted \n \n \n \n \n \n \nIncome \nEarnings \nIncome \nEarnings \n \n \n \n \nPer Share \nPer Share \n As reported $ 169     $ 0.62     $ 87     $ 0.31   \n Loss on extinguishment of debt   —       —       13       0.05   \n Benefit plan income, net   (6 )     (0.02 )     (4 )     (0.01 ) \n Impairment, restructuring and other costs   16       0.06       22       0.08   \n Gains on sale of real estate   (9 )     (0.03 )     (16 )     (0.06 ) \n Income tax impact of items identified above   —       —       (4 )     (0.02 ) \n As adjusted to exclude items above $ 170     $ 0.63     $ 98     $ 0.35   \n Net tariff refund benefit   (84 )     (0.31 )     —       —   \n Income tax impact of net tariff refund benefit   21       0.08       —       —   \n As adjusted to exclude the impact of the net tariff refund benefit, net of tax $ 107     $ 0.40     $ 98     $ 0.35   \n                 \n   26 Weeks Ended   26 Weeks Ended \n \n \n \n \nAugust 1, 2026 \nAugust 2, 2025 \n   Net   Diluted   Net   Diluted \n \n \n \n \n \n \nIncome \nEarnings \nIncome \nEarnings \n \n \n \n \nPer Share \nPer Share \n As reported $ 232     $ 0.85     $ 124     $ 0.44   \n Loss on extinguishment of debt   —       —       17       0.06   \n Benefit plan income, net   (12 )     (0.04 )     (8 )     (0.02 ) \n Impairment, restructuring and other (benefits) costs   (1 )     —       30       0.11   \n Gains on sale of real estate   (23 )     (0.09 )     (32 )     (0.12 ) \n Income tax impact of items identified above   9       0.03       (2 )     (0.01 ) \n As adjusted to exclude items above $ 205     $ 0.75     $ 129     $ 0.46   \n\n\n \n\n\n\nView source version on businesswire.com:\nhttps://www.businesswire.com/news/home/20260910875611/en/\n(https://www.businesswire.com/news/home/20260910875611/en/)\n\nMedia – Chris Grams \n\ncommunications@macys.com (mailto:communications@macys.com)\n\nInvestors – Caitlin Howe \n\ninvestors@macys.com (mailto:investors@macys.com)\n\n\nCopyright Business Wire 2026"},"type":"article","timestamp":"2026-09-10T10:55:00.300061306Z","server_sent_at_ms":1789037700300},"received_at":"2026-09-10T10:55:00.586Z","source_url":"https://www.businesswire.com/news/home/20260910875611/en/"},"analysis":{"id":"128933","press_release_id":"140097","analysis_json":{"industry":{"label":"Broadline Retail","sector":"Consumer Discretionary"},"redFlags":["180 bps gross margin expansion was entirely from one-time IEEPA tariff refunds; underlying margin up only 10 bps","headline +100% GAAP EPS growth flattered by a $0.23 net tariff refund benefit; ex-refund adjusted EPS was $0.40 vs $0.35","guidance raise partially reflects tariff refund flow-through (~$0.05/share) and management flags macro/geopolitical risk to discretionary spend"],"eventType":"earnings","narrative":"Macy's, Inc. reported Q2 2026 net sales of $4.9 billion, up 1.1% year-over-year, with comparable sales up 2.7% — the fifth consecutive quarter of comp growth — and said it exceeded expectations across all key metrics.\n\nGAAP diluted EPS doubled to $0.62 and adjusted diluted EPS rose 14% to $0.63 excluding a $0.23 net tariff refund benefit; adjusted EBITDA climbed to $457 million (9.0% of revenue) from $373 million (7.5%) a year ago, while gross margin of 41.5% expanded 180 basis points entirely on tariff refunds (underlying gain just 10 bps).\n\nBloomingdale's comps surged 11.3% on its highest second-quarter volume ever and Bluemercury added 6.2%, while Reimagine 200 Macy's locations outpaced the core chain at +1.9% comps.\n\nManagement raised full-year 2026 guidance across the board — net sales to $21.675-$21.825 billion and adjusted diluted EPS to $2.15-$2.35 — while returning cash via $50 million of Q2 buybacks and a declared 19.15-cent quarterly dividend payable October 1, 2026.","sentiment":"bullish","agentHooks":{"shouldPost":true,"suggestedAngle":"Beat-and-raise quarter with a fifth straight quarter of comp growth and luxury strength at Bloomingdale's — but dissect how much of the margin upside is one-time tariff refunds."},"keyFigures":{"eps":0.62,"revenue":4866000000,"guidance":"FY26 net sales $21.675 billion to $21.825 billion (raised from $21.5 billion to $21.75 billion); comparable sales +1.0% to +1.5% (from +0.5% to +1.2%); adjusted EBITDA 7.8%-8.0% of total revenue (from 7.7%-7.9%); adjusted diluted EPS $2.15-$2.35 (raised from $2.00-$2.20)","revenueYoy":"1.1%","customDimensions":{"total_debt":2400000000,"macys_comps":"1.1%","q2_buyback_usd":50000000,"adjusted_ebitda":457000000,"gaap_net_income":169000000,"comparable_sales":"2.7%","operating_income":244000000,"bluemercury_comps":"6.2%","gross_margin_rate":"41.5%","q2_buyback_shares":2200000,"q2_dividends_paid":51000000,"sga_pct_of_revenue":"38.7%","adjusted_net_income":170000000,"bloomingdales_comps":"11.3%","reimagine_200_comps":"1.9%","adjusted_diluted_eps":0.63,"cash_and_equivalents":1300000000,"tariff_refunds_total":116000000,"adjusted_ebitda_margin":"9.0%","h1_operating_cash_flow":586000000,"go_forward_comparable_sales":"2.8%","merchandise_inventories_yoy":"2.5%","buyback_authorization_remaining":1000000000}},"quotedText":"Combined with disciplined\nexecution, we expect these efforts to continue to build a durable foundation\nfor sustainable, profitable growth.","namedEntities":{"people":[{"name":"Tony Spring","role":"chairman and chief executive officer"}],"products":["Macy's","Bloomingdale's","Bluemercury","Reimagine 200","Macy's Media Network","Bold New Chapter"],"companies":[{"name":"Macy's, Inc.","ticker":"M","relationship":"filer"},{"name":"Bloomingdale's","relationship":"nameplate subsidiary"},{"name":"Bluemercury","relationship":"nameplate subsidiary"}],"dollarAmounts":[{"amount":"$4.9 billion","context":"Q2 2026 net sales, up 1.1% YoY"},{"amount":"$193 million","context":"Q2 other revenue, up 3.2%"},{"amount":"$457 million","context":"Q2 adjusted EBITDA, 9.0% of total revenue"},{"amount":"$169 million","context":"Q2 GAAP net income"},{"amount":"$116 million","context":"total IEEPA tariff refunds received ($98 million in Q2 plus $18 million after quarter end)"},{"amount":"$51 million","context":"cash returned via quarterly dividend in Q2 2026"},{"amount":"$50 million","context":"Q2 2026 share repurchases (2.2 million shares)"},{"amount":"$1.3 billion","context":"cash and cash equivalents at quarter end vs $0.8 billion last year"},{"amount":"$2.4 billion","context":"total debt; no material long-term maturities until 2030"},{"amount":"$1.0 billion","context":"remaining under $2.0 billion share repurchase authorization"},{"amount":"$21.675 billion to $21.825 billion","context":"raised FY2026 net sales guidance"}]},"materialImpact":{"score":4,"reasoning":"Beat its own expectations across all key metrics, posted a fifth consecutive quarter of comp growth, and raised full-year guidance on net sales, comps, EBITDA margin and EPS. Score held at 4 because headline EPS and margin gains are flattered by one-time tariff refunds and no consensus comparison is quantified in the release."},"tickerRelevance":{"others":[],"primary":"M"},"globalImportance":48,"audienceRelevance":60,"eventTypeSecondary":["guidance_update"],"importanceComponents":{"tickerTier":"large-cap household-name retailer","eventGravity":"earnings beat + full guidance raise","sectorWeight":"consumer discretionary / department stores","householdBrandBoost":true,"retailFavoriteBoost":"moderate - consumer-facing brand with broad retail following","earningsQualityCaveat":"one-time tariff refunds inflate headline margin and EPS growth"}},"event_type":"earnings","event_type_secondary":["guidance_update"],"sentiment":"bullish","material_impact_score":4,"narrative":"Macy's, Inc. reported Q2 2026 net sales of $4.9 billion, up 1.1% year-over-year, with comparable sales up 2.7% — the fifth consecutive quarter of comp growth — and said it exceeded expectations across all key metrics.\n\nGAAP diluted EPS doubled to $0.62 and adjusted diluted EPS rose 14% to $0.63 excluding a $0.23 net tariff refund benefit; adjusted EBITDA climbed to $457 million (9.0% of revenue) from $373 million (7.5%) a year ago, while gross margin of 41.5% expanded 180 basis points entirely on tariff refunds (underlying gain just 10 bps).\n\nBloomingdale's comps surged 11.3% on its highest second-quarter volume ever and Bluemercury added 6.2%, while Reimagine 200 Macy's locations outpaced the core chain at +1.9% comps.\n\nManagement raised full-year 2026 guidance across the board — net sales to $21.675-$21.825 billion and adjusted diluted EPS to $2.15-$2.35 — while returning cash via $50 million of Q2 buybacks and a declared 19.15-cent quarterly dividend payable October 1, 2026.","key_figures":{"eps":0.62,"revenue":4866000000,"guidance":"FY26 net sales $21.675 billion to $21.825 billion (raised from $21.5 billion to $21.75 billion); comparable sales +1.0% to +1.5% (from +0.5% to +1.2%); adjusted EBITDA 7.8%-8.0% of total revenue (from 7.7%-7.9%); adjusted diluted EPS $2.15-$2.35 (raised from $2.00-$2.20)","revenueYoy":"1.1%","customDimensions":{"total_debt":2400000000,"macys_comps":"1.1%","q2_buyback_usd":50000000,"adjusted_ebitda":457000000,"gaap_net_income":169000000,"comparable_sales":"2.7%","operating_income":244000000,"bluemercury_comps":"6.2%","gross_margin_rate":"41.5%","q2_buyback_shares":2200000,"q2_dividends_paid":51000000,"sga_pct_of_revenue":"38.7%","adjusted_net_income":170000000,"bloomingdales_comps":"11.3%","reimagine_200_comps":"1.9%","adjusted_diluted_eps":0.63,"cash_and_equivalents":1300000000,"tariff_refunds_total":116000000,"adjusted_ebitda_margin":"9.0%","h1_operating_cash_flow":586000000,"go_forward_comparable_sales":"2.8%","merchandise_inventories_yoy":"2.5%","buyback_authorization_remaining":1000000000}},"named_entities":{"people":[{"name":"Tony Spring","role":"chairman and chief executive officer"}],"products":["Macy's","Bloomingdale's","Bluemercury","Reimagine 200","Macy's Media Network","Bold New Chapter"],"companies":[{"name":"Macy's, Inc.","ticker":"M","relationship":"filer"},{"name":"Bloomingdale's","relationship":"nameplate subsidiary"},{"name":"Bluemercury","relationship":"nameplate subsidiary"}],"dollarAmounts":[{"amount":"$4.9 billion","context":"Q2 2026 net sales, up 1.1% YoY"},{"amount":"$193 million","context":"Q2 other revenue, up 3.2%"},{"amount":"$457 million","context":"Q2 adjusted EBITDA, 9.0% of total revenue"},{"amount":"$169 million","context":"Q2 GAAP net income"},{"amount":"$116 million","context":"total IEEPA tariff refunds received ($98 million in Q2 plus $18 million after quarter end)"},{"amount":"$51 million","context":"cash returned via quarterly dividend in Q2 2026"},{"amount":"$50 million","context":"Q2 2026 share repurchases (2.2 million shares)"},{"amount":"$1.3 billion","context":"cash and cash equivalents at quarter end vs $0.8 billion last year"},{"amount":"$2.4 billion","context":"total debt; no material long-term maturities until 2030"},{"amount":"$1.0 billion","context":"remaining under $2.0 billion share repurchase authorization"},{"amount":"$21.675 billion to $21.825 billion","context":"raised FY2026 net sales guidance"}]},"model_name":"glm-5.3-flash","prompt_hash":"sha256:727b4b9429a443af","schema_hash":"sha256:05005c02d9cffac9","created_at":"2026-09-10T10:56:02.718Z","global_importance":48,"audience_relevance":60,"importance_components":{"tickerTier":"large-cap household-name retailer","eventGravity":"earnings beat + full guidance raise","sectorWeight":"consumer discretionary / department stores","householdBrandBoost":true,"retailFavoriteBoost":"moderate - consumer-facing brand with broad retail following","earningsQualityCaveat":"one-time tariff refunds inflate headline margin and EPS growth"}},"durationMs":57112,"modelName":"glm-5.3-flash"}}