Macy's, Inc.

What they do

Macy's sells apparel and accessories, cosmetics, home furnishings and other consumer goods through three nameplates spanning off-price to premium luxury. Macy's is the large middle-to-higher-income full-line and Backstage off-price banner; Bloomingdale's is the upscale contemporary-to-luxury chain, plus Bloomies, The Outlet and licensed stores in Dubai and Kuwait; Bluemercury is a luxury beauty and spa services retailer. Merchandise mix in fiscal 2025 was women's accessories, shoes, cosmetics and fragrances $9.13B, women's apparel $4.76B, men's and kids' $4.66B, and home/other $3.21B.

Revenue drivers

• Macy's nameplate — The core department store banner, including the Reimagine 200 stores representing about 60% of the go-forward Macy's fleet and about 75% of Macy's go-forward sales; Macy's comparable sales rose 1.1% in Q2 2026.
• Bloomingdale's — The luxury division, with Q2 2026 comparable sales up 11.3% and the highest second-quarter sales volume in the brand's 154-year history.
• Bluemercury — Luxury beauty and spa services retailer; Q2 2026 comparable sales increased 6.2%, led by makeup, dermatological skincare and fragrance.
• Other revenue — $193 million in Q2 2026, up 3.2%, including credit card net revenues of $156 million and Macy's Media Network net revenue of $37 million.

Recent performance

Second quarter 2026 net sales rose 1.1% to $4.9 billion (up 1.9% excluding fiscal 2025 store closures), with company comparable sales up 2.7% and go-forward comparable sales up 2.8%. GAAP diluted EPS was $0.62 versus $0.31 a year earlier, and adjusted diluted EPS was $0.63 versus $0.35, including a $0.23 net tariff refund benefit. Gross margin rate was 41.5%, up 180 basis points including a 180 basis point tariff refund benefit; SG&A was 38.7% of total revenue, down 20 basis points. Adjusted EBITDA was $457 million, or 9.0% of total revenue, versus $373 million and 7.5% last year. The company ended the quarter with $1.3 billion in cash and $2.0 billion of available borrowing capacity.

Strategy

Management is executing the multi-year Bold New Chapter strategy along three pillars: strengthen and reimagine the Macy's nameplate, accelerate and differentiate luxury, and simplify and modernize operations. Macy's is investing in staffing, events and localized merchandising at Reimagine locations, curating new and expanded brands, and rolling out AI tools such as the Ask Macy's conversational shopping assistant. Bloomingdale's and Bluemercury are being funded as growth platforms through assortment expansion and new and remodeled stores, and Bloomingdale's launched its own AI shopping assistant. Operations work includes supply chain and fulfillment productivity, with units processed per hour up 7.0% and order-to-shipment days down 6.7% year over year.

Risks

• Strategy execution — The 10-K states the company may not successfully implement Bold New Chapter or realize its anticipated benefits within the expected time frame or at all.
• Competitive and channel shift — The filings cite competitive pressure from department, specialty, off-price, discount and digitally native retailers as shoppers' behavior migrates to other channels.
• Tariffs and import costs — The 10-K lists duties, taxes, tariffs, other charges and quotas on imports, and reliance on foreign production, as risks to costs and merchandise availability.
• Consumer spending — Results depend on general economic conditions, disposable income, confidence and consumer debt levels, and the business is seasonal.

Outlook

Management raised full-year top- and bottom-line guidance after exceeding its expectations on all key metrics in the second quarter of 2026. CEO Tony Spring said the company will keep scaling what resonates with customers, including brands, assortments and events, combined with disciplined execution, to build a foundation for sustainable, profitable growth. The company said the composition and level of merchandise inventories, up 2.5% year over year, are well-positioned heading into the second half of 2026.