Macy's Lifts Full-Year Outlook on Strong Bloomingdale's, Bluemercury Sales

Macy's Inc. raised its full-year sales and profit forecasts on Thursday, citing strong performance at its upscale Bloomingdale’s and Bluemercury brands that offset lagging growth at its namesake stores. The department store operator's shares rose after it also reported second-quarter results that surpassed analyst expectations.

Upgraded Forecast and Quarterly Beat

The company announced an improved outlook for fiscal 2026, signaling confidence in its strategy despite macroeconomic uncertainties. Shares in Macy's were up approximately 5% in premarket trading following the news.

• Net Sales Forecast: Now projected to be between $21.68 billion and $21.83 billion, up from a prior range of $21.50 billion to $21.75 billion.
• Adjusted EPS Forecast: Lifted to a range of $2.15 to $2.35 per share, compared to the previous outlook of $2.00 to $2.20 per share.

The upgraded guidance was supported by a solid second-quarter performance. Sales rose 1.1% to $4.87 billion, topping the analyst consensus of $4.83 billion, according to LSEG data. Adjusted quarterly profit increased 80% to 63 cents per share.

Luxury Brands Drive Growth

The results highlight a continued divergence in consumer behavior, with higher-income shoppers maintaining spending on luxury goods. This trend was evident in the company's comparable sales figures, which showed its upscale chains significantly outperforming its core brand.

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• Bloomingdale’s: Comparable sales surged 11.3%.
• Bluemercury: Comparable sales at the beauty and skincare retailer grew 6.2%.
• Macy’s namesake stores: Comparable sales saw a modest 1.1% increase.

The performance underscores the resilience of the luxury consumer, who continues to purchase high-end apparel, handbags, fragrances, and cosmetics despite a more cautious economic environment affecting middle-income shoppers.

'Bold New Chapter' Strategy

The strong results reflect progress in the "Bold New Chapter" turnaround plan initiated by CEO Tony Spring in 2024. The strategy focuses on prioritizing higher-margin products, closing underperforming stores, and investing in the company's more profitable luxury segments.

"The investments we’re making are driving results across our portfolio," Spring said in a statement. The company also noted that its quarterly earnings were boosted by tariff refunds, which contributed 23 cents per share to its adjusted profit.