Macy’s Inc (NYSE: M), the US department-store operator behind the Macy’s, Bloomingdale’s and Bluemercury brands, beat second-quarter earnings estimates and raised its full-year guidance today. Shares fell anyway, as markets focused on how much of that raise is being driven by a one-off tariff refund rather than underlying trading momentum.
The stock dropped 4.19% in early trading to $21.51, down from Wednesday’s close of $22.45. Peers Kohl’s and TJX were little changed on the day, a contrast that suggests the sell-off may be specific to Macy’s rather than a broader retail move.
Adjusted earnings per share came in at $0.40 against a $0.37 consensus tracked by LSEG, with revenue of $4.87 billion topping the $4.83 billion expected. Comparable sales, which strip out store openings and closures, rose 2.7% overall, led by an 11.3% jump at Bloomingdale’s and 6.2% at Bluemercury, while the core Macy’s brand added just 1.1%.
Management raised its FY2026 outlook for net sales, comparable sales and adjusted EPS, pointing to progress on the “Bold New Chapter” turnaround led by chief executive Tony Spring. Spring said: “I think it’s a different Macy’s Inc. today. We’re in a healthier position. We’re catering to our customers while we’re also becoming a more interesting investment option for our shareholders.”
The catch is embedded in the numbers. Macy’s has received $116 million in tariff refunds, money repaid after import duties were reduced, and the new EPS guidance includes roughly 5 cents per share from that windfall. Most of the refund, about $96 million, is being reinvested into the turnaround rather than dropped straight to profit.
Spring framed the reinvestment as strategic rather than a one-off boost: “There is great value being offered across all of our nameplates, and we just really wanted to make sure that the reinvestment of the tariff refunds were things that were beyond one-time benefits that really had lasting power to support the overarching intent of our strategy.” Net income still more than doubled to $169 million, or $0.62 a share, from $87 million a year earlier, but the market’s reaction suggests it is now pricing the composition of guidance, not just the headline beat.