Macy's Inc

F:FDO

Strong quarter: Macy's, Inc. reported 2.7% comparable sales growth, with net sales, adjusted EBITDA and adjusted diluted EPS all exceeding guidance.

Brand momentum: Bloomingdale's delivered 11.3% comparable sales growth, Macy's posted its fifth consecutive quarter of positive comps, and Bluemercury grew 6.2%.

Guidance raised: Full-year net sales guidance increased to $21.675 billion-$21.825 billion and adjusted diluted EPS guidance increased to $2.15-$2.35.

Tariff refunds: Macy's received $116 million in refunds, flowing approximately $20 million, or $0.05 per share, to earnings and reinvesting the balance in pricing, marketing and Reimagine initiatives.

Margin outlook: Gross margin benefited from favorable brand mix and lower-than-expected tariff and fuel pressure, while supply-chain savings are expected to support gross margin in the second half.

Consumer trends: Middle- and higher-income customers remained resilient, while lower-income shoppers were more selective; traffic was steady but conversion remained a challenge as assortments moved toward higher-priced products.

Strategic investment: Management plans to expand Reimagine pilots, AI-powered shopping tools and brand partnerships, with the long-term goal of applying Reimagine across the go-forward Macy's fleet.