revenue
4.65–4.7 $billion
Q3 2026
official guidance
MACY'S, INC.
Last · NYSE$22.68-0.06 (-0.26%)close · yahoo · 9h ago
Market cap$5.92B261.2M sh
P/E · TTM8.3fwd 9.5 · eps 2.73
Beta1.47vs S&P 500
Div yield3.37%annual · TTM
52w range
$16.69$26.59
Volume7.8Msession
| Revenue | $22.8B |
|---|---|
| Operating income | $1.1B |
| Net income | $750.0M |
| Free cash flow | $433.0M |
| Operating margin | 5.0% |
| Net margin | 3.3% |
| Return on equity | 15.2% |
| Period | TTM 2026-08-01 |
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OpenFilings analyst
Our analyst
Agentic read of the latest earnings call — recommendation updates when we process a new transcript. Research synthesis, not investment advice.
Strong BuyBuyHoldSellStrong Sell
Strong execution is offset by tariff-related earnings support and a cautious near-term sales outlook.
Hold: Macy's delivered $4.9 billion of net sales, 2.8% go-forward comps, 41.5% gross margin and $0.63 adjusted EPS, but the quarter included a $0.23 tariff-refund benefit.
The raised FY26 outlook of $21.675-$21.825 billion sales and $2.15-$2.35 EPS is encouraging, yet Q3 comps are guided to -0.5% to +0.5% and conversion remains pressured, so the improvement is not yet durable enough for a buy.
Themes
- Macys
- Reimagine Stores
- Bloomingdales
- Tariff Refunds
- Retail Consumer
- Ai Replenishment
Near term
Q3 guidance implies flat comps (-0.5% to +0.5%) despite Q2 outperformance, with higher planned SG&A investment and a $0.19-$0.23 adjusted EPS loss.
Bloomingdale's 11.3% comp growth and Bluemercury's 6.2% growth are important offsets if Macy's core banner remains only modestly positive.
The $116 million tariff refund is fully received, but only about $20 million is flowing to earnings; the balance is being reinvested in pricing, marketing, Reimagine pilots and fuel protection.
Longer term
The Reimagine program is the central operating proof point: 200 stores produced 1.9% comps and represent about 75% of Macy's go-forward store sales, with further expansion planned.
China Grove automation and AI-assisted replenishment could improve service, inventory productivity and gross margin as they scale.
AUR rose about 9%, but management explicitly frames the benefit primarily as expense leverage and better mix rather than an automatic gross-margin expansion.
Red flags
Adjusted EPS growth is materially flattered by the $0.23 tariff-refund benefit, while management's underlying outlook remains dependent on execution and reinvestment.
Traffic is steady but conversion is lower, and management acknowledged softness in big-ticket categories, plus sizes, intimates and women's sleepwear.
The call did not quantify Reimagine cohort economics or a clear payback period, limiting confidence in the planned rollout across the full go-forward fleet.
The consumer is more resilient at middle and higher incomes while lower-income customers remain more selective, creating mix and demand risk.
Forward outlook
revenue growth
-0.5–0.5 pct
Q3 2026
official guidance
ebitda
3.7–4 pct
Q3 2026
official guidance
adjusted eps
-0.23–-0.19 $per share
Q3 2026
official guidance
revenue
21.675–21.825 $billion
FY 2026
official guidance
revenue growth
1–1.5 pct
FY 2026
official guidance
gross margin
38.5–38.7 pct
FY 2026
official guidance
ebitda
7.8–8 pct
FY 2026
official guidance
adjusted eps
2.15–2.35 $per share
FY 2026
official guidance
OpenFilings analyst view from primary-source filings and earnings calls — not investment advice.
From latest 10-K · 2026-03-27
- Comparable Sales
- Tariff Pressure
- Adjusted Ebitda Decline
- Store Reimagination
- Luxury Growth
- Digital Retail
- Credit Card Revenue
- Share Repurchase
Red flags
- Underlying profitability weakened: adjusted EBITDA fell 6.8% to $1.842 billion, while adjusted diluted EPS fell from $2.64 to $2.32.
- Gross margin declined to 38.0% from 38.4% as tariffs outweighed mitigation efforts; further tariff increases could pressure merchandise margins and pricing.
- The company had approximately $3.6 billion of purchase obligations at January 31, 2026, up from $2.9 billion, primarily due within one year, increasing inventory and liquidity execution risk.
- Reported operating income includes a $328 million interchange-fee settlement gain, while gains on real-estate sales fell to $48 million from $144 million, reducing the contribution from non-core items.
- Proprietary credit-card penetration declined to 40.1% from 41.6%, even though credit-card revenue rose 25% to $669 million; the credit contribution may be difficult to sustain if penetration continues to fall.
Upcoming earnings
1:30 PM UTC+1
Period
Oct 2026
Est. EPS
−$0.18
Est. revenue
4.7B
Earnings transcripts
Documents
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