Macy's Raises Full-Year Outlook Following Fiscal Second-Quarter Beat

09:17 AM EDT, 09/10/2026 (MT Newswires) -- Macy's (M) lifted its full-year outlook on Thursday as the department store operator reported higher-than-expected fiscal second-quarter earnings and revenue. Adjusted earnings are now anticipated to be in a range of $2.15 to $2.35 per share for fiscal 2026, up from the previous guidance of $2 to $2.20. The current consensus on FactSet is for non-GAAP EPS of $2.24 Sales are pegged to come in between $21.68 billion and $21.83 billion, compared with prior projections of $21.5 billion to $21.75 billion. The Street is looking for sales of $21.72 billion. Comparable owned-plus-licensed-plus-marketplace sales are forecast to increase by 1% to 1.5%, up from the previous outlook for growth of 0.5% to 1.2%. "We are raising our full year outlook, reflecting our better results and confidence in the bold new chapter strategy, as well as a pass-through of a portion of our tariff refunds," Chief Executive Tony Spring said during an earnings call, according to a FactSet transcript. "Consistent with our past practice, we are taking a prudent approach that provides the flexibility to respond to potential changes in the competitive landscape and consumer demand." In a client note emailed in August, UBS Securities said it expected Macy's to raise its earnings guidance. However, the brokerage said at the time that it did not expect the second-quarter results to meaningfully change investor sentiment, which it viewed as leaning bearish. Macy's shares fell 3% in the most recent premarket activity. Last month, department store chain Kohl's (KSS) raised its full-year earnings outlook due to tariff refunds but said it continues to expect subdued sales amid a difficult operating environment. Retailer Target (TGT) also lifted its full-year outlook. For the three months through Aug. 1, Macy's adjusted EPS advanced to $0.63 from $0.35 the year before, topping the average analyst estimate of $0.37. The result included a net tariff refund benefit of $0.23. Sales, inclusive of store closures, rose to $4.87 billion from $4.81 billion, which was the Street's view. The company received $98 million in tariff refunds during the quarter. Earlier this year, the US Supreme Court ruled that the Trump administration lacked authority under the International Emergency Economic Powers Act to impose certain tariffs, paving the way for refunds to companies that had paid the duties. Comparable sales rose 2.7% on a yearly basis. By brand, Macy's comparable sales were up 1.1% while Bloomingdale's climbed 11%. Bluemercury comparable sales grew 6.2%. For the ongoing three-month period, Macy's expects to record an adjusted loss of between $0.19 and $0.23 a share, according to an earnings presentation, compared with the market's current forecast for a $0.06 loss. Sales are set to be in a range of $4.65 billion to $4.7 billion, while the Street is looking for $4.65 billion. Comparable sales are anticipated to be down 0.5% to up 0.5%, the presentation showed.