Macy's Stock Drops On Cautious Q3 View, Despite Positive Q2 Results, Raised FY26 Outlook

(RTTNews) - Omni-channel fashion retailer Macy's, Inc., while reporting higher profit and comparable sales in its second quarter, on Thursday issued third-quarter forecast, expecting an adjusted loss and cautious comps. Further, the firm raised outlook for fiscal 2026.

In pre-market activity on the NYSE, the shares were losing around 3.90 percent, trading at $20.68, extending the 4.19 percent drop on Wednesday's regular trading close.

Looking ahead for the third quarter, the company projects adjusted loss per share of $0.23 to $0.19, and adjusted EBITDA margin of 3.7 percent to 4.0 percent, with net sales of $4.65 billion to $4.70 billion.

Comparable sales for the quarter are projected to be down 0.5 percent to up 0.5 percent, compared to the previous year.

Further, for fiscal 2026, the company now projects adjusted earnings per share of $2.15 to $2.35, higher than previously expected $2.00 to $2.20.

Adjusted EBITDA margin is now expected to be 7.8 percent to 8.0 percent, compared to previous view of 7.7 percent to 7.9 percent.

The firm raised net sales outlook to $21.675 billion to $21.825 billion from the earlier estimate of $21.5 billion to $21.75 billion, and comparable sales growth of 1.0 percent to 1.5 percent, compared to earlier expected 0.5 percent to 1.2 percent.

In the second quarter, Macy's earnings came in at $169 million or $0.62 per share, higher than $87 million or $0.31 per share last year.

Adjusted earnings were $170 million or $0.63 per share including a $0.23 net tariff refund benefit, while it was $107 million or $0.40 per share for the period excluding the tariff impact, while last year's adjusted earnings were $98 million or $0.35 per share.

Adjusted EBITDA was $457 million, or 9.0 percent of total revenue, higher than $373 million, or 7.5 percent of total revenue, a year ago.

The company's net sales for the period rose 1.1 percent to $4.866 billion from $4.812 billion last year. Net sales grew 1.9 percent excluding the impact of fiscal 2025 store closures.

Comparable sales rose 2.7 percent, with positive result at each of the company's nameplates. Go-forward comparable sales went up 2.8 percent.

Macy's brand comparable sales rose 1.1 percent, with a 1.9 percent increase for Reimagine 200 stores.

Bloomingdale's comparable sales increased 11.3 percent, and Bluemercury comparable sales increased 6.2 percent. For more earnings news, earnings calendar, and earnings for stocks, visit rttnews.com.