Macys 2026 Q2 Earnings Net Income Falls 42% Amid Revenue Decline

Macy's (M) reported its fiscal 2026 Q2 earnings on September 10, 2025. The company missed its recent performance trends as revenue declined 2.5% year-over-year and net income dropped 42%. The updated full-year guidance reflects a cautious outlook, with Q3 guidance set below breakeven.

Revenue for the quarter totaled $4.81 billion, a decrease from $4.94 billion in the same period the prior year. While women’s accessories, shoes, and cosmetics generated $1.95 billion, women’s apparel brought in $1.09 billion, and men’s and kids’ segments reported $1.03 billion. Home and other categories totaled $736 million, and credit card revenues contributed $153 million. The Macy’s Media Network accounted for $34 million in revenue. Overall, the company faced softer demand across multiple categories, leading to a broad-based decline in sales.

Earnings per share (EPS) dropped 40.7% to $0.32 in Q2 2026, compared to $0.54 in the prior-year period. Net income also fell significantly to $87 million, down from $150 million a year ago. This decline in profitability indicates a challenging operating environment, with both revenue and margins under pressure.

The stock price of Macy's rose 0.24% during the latest trading day, gained 4.67% for the week, and surged 41.06% month-to-date, outperforming recent quarterly results. However, the post-earnings reaction has been mixed, with shares continuing to reflect investor uncertainty around the company's near-term recovery trajectory.

CEO Tony Spring described the quarter as a positive step forward, highlighting improved store experiences, strong sales in denim, women’s contemporary apparel, and watches, and better inventory management. Despite these gains, he acknowledged ongoing challenges from tariffs and emphasized a strategy of cautious optimism as Macy’s looks to take market share and strengthen its long-term positioning.

The company has updated its full-year 2025 guidance to an adjusted EPS range of $1.70–$2.05 and revenue between $21.15–$21.45 billion. Q3 2025 guidance is set at an adjusted EPS range of -$0.20–$0.15, reflecting the anticipated impact of tariffs and the need for strategic pricing adjustments.

In a separate announcement on September 3, 2025, Macy’s Inc. reported its second-quarter 2025 results, providing an overview of its corporate structure, leadership, governance, and strategic initiatives across Macy’s, Bloomingdale’s, and Bluemercury. The report included updates on the company’s mission-driven initiatives, diversity, equity, and inclusion efforts, sustainability goals, and vendor partnerships. Additionally, Macy’s outlined its commitment to corporate governance and provided an overview of investor resources, including stock data, SEC filings, and analyst coverage. The report did not include specific earnings metrics but emphasized the company’s long-term vision and stakeholder engagement.