Macy’s raises its annual outlook after another quarter of sales growth

Macy’s ($M) increased its full-year sales and earnings forecasts after second-quarter net sales rose 1.1% to approximately $4.9 billion. Comparable sales increased 2.7%, while the go-forward business — the locations and digital operations retained in its strategy — grew 2.8%. The group reported growth across its retail nameplates, with its upgraded Macy’s stores and luxury operations contributing to the improvement.

Management now expects annual net sales of $21.675–21.825 billion and adjusted diluted earnings of $2.15–2.35 per share, up from $21.5–21.75 billion and $2.00–2.20, respectively. Tariff refunds are part of the picture: most of the benefit will be reinvested, leaving approximately $0.05 per share in the full-year earnings outlook. That distinction matters when comparing the headline improvement with underlying trading performance.

Sources:

• Macy’s — second-quarter results and revised guidance