stockrowLatest quarter
Macy’s reported Q2 FY2027 revenue of $5.1 billion, up from $5.0 billion a year earlier. On the basis used for the consensus comparison, revenue was $4.9 billion against an estimate of $4.8 billion, while adjusted earnings per share were $0.40 against $0.37.
The filing said comparable sales grew across all three nameplates, with Bloomingdale’s growth spanning channels, markets and merchandise categories. It also said Bluemercury benefited from makeup, skincare and fragrance, as well as new and remodeled stores.
Macy’s reported gross margin of 43.7%, compared with 42.0% a year earlier; the filing attributed the increase mainly to tariff refunds. Operating margin rose to 4.82% from 2.98%, while diluted earnings per share increased to $0.62 from $0.31. Free cash flow declined to $157.0 million from $190.0 million.
| Q2 FY2027 | Q2 FY2026 | Change | |
|---|---|---|---|
| Revenue | $5.1 billion | $5.0 billion | 1.20% |
| Diluted EPS | $0.62 | $0.31 | 100.0% |
| Gross margin | 43.7% | 42.0% | 1.7 percentage points |
| Operating margin | 4.82% | 2.98% | 1.8 percentage points |
| Free cash flow | $157.0 million | $190.0 million | −17.4% |
| Against the consensus | Reported | Consensus | Result |
|---|---|---|---|
| Adjusted EPS | $0.40 | $0.37 | Beat by 8.11% |
| Revenue | $4.9 billion | $4.8 billion | Beat by 0.96% |
Adjusted EPS is the figure the consensus estimates, not the GAAP EPS above.
What management said on the call
CEO Antony Spring said customers responded to new products and events during the quarter, with performance stronger among the middle- and upper-income shoppers who make up much of Macy’s customer base. He cited watches, dresses, handbags, fragrances and shoes among the categories that performed well, while plus sizes, intimates and women’s sleepwear had softer trends. Big-ticket sales improved from the prior quarter but remained softer than a year earlier, he said.
Spring said the Reimagined stores benefited from changes to staffing, events and local assortments. Asked about individual store cohorts, he said all were growing but did not break out their results. He also said traffic at those stores was steady, with larger baskets but slightly lower conversion.
On pricing, Spring told analysts that improved assortments and brands supporting higher price points were lifting average unit retail. He cautioned that a higher average price does not automatically produce a higher gross margin because margins depend on the category and brand. Macy’s was using some tariff refunds to sharpen prices in categories including furniture and fine jewelry, he added.
CFO Thomas Edwards said underlying gross margin improved after excluding the net tariff refund benefit and ongoing tariff and fuel effects. Asked about the second half, he said supply-chain and inventory-replenishment initiatives would support gross-margin expansion, weighted toward the fourth quarter. He also said Macy’s was expanding an AI forecasting tool to improve inventory allocation.
Edwards said he had not seen a dramatic change in the competitive environment and expected promotional activity to be in line with the prior year. Looking ahead, Spring said the third quarter faced the company’s toughest comparable-sales comparison of the year, while Edwards said second-half expectations remained in line with the prior outlook.
Guidance
Spring said Macy’s raised its full-year outlook to reflect its quarterly results, confidence in its strategy and a portion of tariff refunds. Edwards said the company maintained its prior second-half sales assumptions and planned to reinvest remaining refund proceeds in brand building and store pilots.