Macy's Inc
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Item 1. Business.
General
Macy’s, Inc. (the “Company”, “we”, “us” or “our”) is a premier omnichannel retail organization that operates 665 stores, websites and mobile applications under three iconic brands: Macy's, Bloomingdale's and Bluemercury. The Company sells a wide range of merchandise, including apparel and accessories, cosmetics, home furnishings and other consumer goods and operates across a broad spectrum that spans from value-conscious, off-price shoppers to premium luxury consumers. Macy’s, Inc. leverages its multi-brand, multi-category and multi-channel model to provide a high level of flexibility to read and react to shifting consumer demand and caters to an annual customer base of nearly 40 million active consumers.
•Macy’s is a modern department store that provides a wide range of merchandise, encompassing men's, women's and children's apparel and accessories, cosmetics, home furnishings and other consumer goods. Macy's seeks to attract a broad, middle-to-higher-income customer base by offering compelling, high-quality products, competitive pricing and trusted customer service across its physical and digital channels. To serve different customer segments and trade areas, Macy’s operates full-line and smaller format locations and provides an off-price retail concept through its Macy’s Backstage nameplate.
•Founded over 150 years ago, Bloomingdale’s represents the Company's upscale, premium contemporary-to-luxury department store offering. Bloomingdale's caters to an affluent, multigenerational customer base and positions itself as a store of discovery through vibrant, highly curated shopping environments anchored by exceptional customer service. Bloomingdale’s serves different customer segments and trade areas through its full-line and smaller format locations, Bloomies, as well as its off-price retail concept, Bloomingdale’s The Outlet. In addition, Bloomingdale’s maintains a global presence through its licensed partnerships in Dubai, United Arab Emirates and Al Zahra, Kuwait.
•Bluemercury is a premier luxury beauty and spa services retailer that pioneered a unique, client-first service model through its emphasis on hyper-personalized, high-quality and agnostic beauty interactions in convenient neighborhood locations. Bluemercury's product mix targets the affluent beauty enthusiast, focusing heavily on premium dermatological skincare, clinical treatments and an elevated fragrance assortment.
Macy’s, Inc. was organized as a Delaware corporation in 1985, and, along with its predecessors, have operated department stores since 1830.
Strategy
Our multi‑year enterprise strategy, Bold New Chapter, is designed to help the Company return to sustainable, profitable growth by improving the customer experience, elevating product relevance, evolving our store and digital footprint, investing in the growth areas of our business and modernizing our operating model. The strategy is organized around three pillars:
•Strengthen and Reimagine the Macy's Nameplate: We are focused on creating a more relevant and consistent omni-channel experience at Macy's by improving customer service, elevating and modernizing our merchandise assortments and brand curations and prioritizing investments in our go-forward store locations.
•Accelerate and Differentiate Luxury: We view Bloomingdale’s and Bluemercury as differentiated growth platforms within our portfolio and are investing in these brands to support differentiated product curation, enhance customer service and expand digital and selective physical locations.
•Simplify and Modernize End-to-End Operations: We are modernizing our operating model to reduce complexity, improve speed, reliability and inventory productivity and self‑fund customer‑facing investments with cost savings driven by operational efficiencies.
Merchandise
We sell a wide range of merchandise, including apparel and accessories (men's, women's and kids'), cosmetics, home furnishings and other consumer goods. The specific assortments vary by size of store, merchandising assortments and
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character of customers in the trade areas. Most stores are located at urban or suburban sites, principally in densely populated areas across the United States.
Disaggregation of the Company's net sales by family of business for 2025, 2024 and 2023 was as follows:
| 2025 | 2024 | 2023 | |||||||||||||
| Women's Accessories, Shoes, Cosmetics and Fragrances | $ | 9,128 | $ | 9,333 | $ | 9,520 | |||||||||
| Women's Apparel | 4,764 | 4,826 | 4,861 | ||||||||||||
| Men's and Kids' | 4,659 | 4,753 | 4,918 | ||||||||||||
| Home/Other (a) | 3,213 | 3,381 | 3,793 | ||||||||||||
| Total | $ | 21,764 | $ | 22,293 | $ | 23,092 | |||||||||
(a)Other primarily includes restaurant sales, allowance for merchandise returns adjustments and breakage income from unredeemed gift cards.
We maintain a portfolio of private label brands across all three nameplates that help differentiate assortment and support margin and value propositions. The principal private label brands offered by the Company as of January 31, 2026 include:
•Alfani
•And Now This
•Aqua
•Arch Studio
•Bar III
•Cerulean 6
•Charter Club
•Club Room
•Epic Threads
•First impressions
•Giani Bernini
•Holiday Lane
•Hotel Collection
•Hudson Park
•Ideology
•I-N-C
•JM Collection
•lune+aster
•M-61
•Mode of One
•Oake
•On 34th
•Sky
•State of Day
•Style & Co.
•Sun + Stone
•The Cellar
•Tools of the Trade
•Wild Pair
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Financial statements
data from SEC XBRL filings. Values are as-reported; restatements supersede originals. Values reported in .
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MACY'S, INC.
Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations
For purposes of the following discussion, all references to "second quarter of 2026" and "second quarter of 2025" are to the Company's 13-week fiscal periods ended August 1, 2026 and August 2, 2025, respectively. References to the "first half of 2026" or "2026" and the "first half of 2025" or "2025" are to the Company's 26-week fiscal periods ended August 1, 2026 and August 2, 2025, respectively.
The following discussion should be read in conjunction with the Consolidated Financial Statements and the related notes included elsewhere in this report, as well as the financial and other information included in the 2025 10-K. The following discussion contains forward-looking statements that reflect the Company's plans, estimates and beliefs. The Company's actual results could materially differ from those discussed in these forward-looking statements. Factors that could cause or contribute to those differences include, but are not limited to, those discussed below and elsewhere in this report (particularly in "Risk Factors" and in "Forward-Looking Statements") and in the 2025 10-K (particularly in "Risk Factors" and in "Forward-Looking Statements"). This discussion includes Non-GAAP financial measures. For information about these measures, see the disclosure under the caption "Important Information Regarding Non-GAAP Financial Measures".
On February 18, 2026, the Company announced an update to its non-GAAP financial disclosures. These changes do not impact its historical or future GAAP metrics and disclosures. The updated disclosures, which encompass comparable sales, owned-plus-licensed-plus-marketplace dollar sales, revenues and non-GAAP earnings metrics, are intended to both simplify disclosures and provide increased clarity on the key metrics that support our growth profile and go-forward operating performance. Beginning with the first quarter of 2026, adjusted earnings metrics reflect our new non-GAAP metrics.
Quarterly Overview and Company Strategy
In the second quarter of 2026, the Company delivered comparable sales growth across all nameplates and channels, revenue growth, and better-than-expected performance on all key financial metrics, reflecting progress on each pillar of the strategy. Highlights include:
Strengthen and Reimagine the Macy's nameplate
•.Reimagine 200 Locations:
The Reimagine locations represent approximately 60% of the Macy's go-forward store fleet and approximately 75% of Macy's go-forward sales. The second quarter of 2026 marked the fifth consecutive quarter of growth for these locations, with positive comparable sales in nine of the last ten quarters. Reimagine locations also consistently generate higher Net Promoter Scores ("NPS"), contributing to continued improvement in NPS for the entire Macy's fleet. Performance reflects targeted investments in staffing, events and localized merchandising, and we plan to continue expanding these initiatives.
•.Revitalize Assortment:
We continued to enhance our merchandise offering through disciplined brand curation, including the addition of brands such as Kiko Milano and Happy Camp3r's junior apparel line, and expanded distribution of brands including Reiss, Rodd & Gunn and BOSS.
•.Customer Experience:
Following the launch of Ask Macy's, our artificial intelligence ("AI") powered conversational shopping assistant, we are expanding the tool to support in-store colleagues and enhance customer engagement across channels. We also continued to strengthen customer connections through Macy's Year of Celebrations campaign, including hosting the largest Macy's 4th of July Fireworks event in the brand's history.
Accelerate and differentiate luxury growth
•.Bloomingdale's:
Bloomingdale's achieved the highest second-quarter sales in its 154-year history, driven by growth across channels, markets and merchandise categories. During the second quarter of 2026, Bloomingdale's expanded its luxury assortment through the introduction of brands such as Ulla Johnson, Proenza Schouler and Dries Van Noten, while broadening distribution of brands including James Perse, Chanel Fine Jewelry and Watches, Christian Louboutin and Prada shoes. We also expanded Bloomingdale's Very Important Client program and launched a Bloomingdale's AI-powered conversational shopping assistant for digital customers, designed to enhance how customers engage with the brand and discover products.
•.Bluemercury:
Bluemercury delivered another quarter of comparable sales growth, driven by continued strength in makeup, dermatological skincare and fragrance categories, including brands such as Skinceuticals, Victoria Beckham Beauty, La Mer and Jo Malone. Performance also benefited from continued success of both new and remodeled stores.
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MACY'S, INC.
Simplify and modernize end-to-end operations
•.The Company expanded this pillar to encompass enterprise-wide organizational excellence, harnessing the reach and capabilities of Macy's, Inc. to support revenue growth, enhance the customer experience, and effectively execute its strategy. The Company is advancing AI and automation across the customer journey, inventory management and localization, while keeping human connection central to its customers and colleagues. As part of its ongoing efforts to improve supply chain efficiency and enhance service levels, the Company continued to advance initiatives focused on order processing and fulfillment productivity. Compared to the second quarter of 2025, the Company increased its units processed per hour by 7.0%1 and reduced the average number of days between order placement and shipment by 6.7%.
Comparable sales2 highlights for the second quarter of 2026 versus the second quarter of 2025 are as follows:
•Macy's, Inc. comparable sales increased 2.7%.
•Macy's, Inc. go-forward business, inclusive of go-forward locations and digital across nameplates, total revenue increased 1.9% to $4.9 billion and comparable sales increased 2.8%. The Company's go-forward nameplate highlights include:
◦Macy's comparable sales increased 1.1%.
•Reimagine 200 locations comparable sales, included within Macy's comparable sales, increased 1.9%.
◦Bloomingdale's comparable sales increased 11.3%.
◦Bluemercury comparable sales increased 6.2%.
Tariff Refunds and Investments
Macy’s, Inc. has received all expected International Emergency Economic Powers Act (“IEEPA”) tariff refunds including $98 million in the second quarter of 2026 and $18 million following the quarter end, for a total of $116 million3. The company is taking a balanced approach to deploying benefits.
1 Specific to direct-to-consumer and store replenishment network and excludes furniture bedding and reverse logistics.
2 Comparable sales refers to owned-plus-licensed-plus-marketplace sales. All reported nameplate comparable sales results are on a go-forward basis.
3 Inclusive of a $95 million gross margin benefit and $3 million interest benefit in the second quarter of 2026, and a $17 million gross margin benefit and $1 million interest benefit in the third quarter of 2026.
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MACY'S, INC.
Results of Operations
Comparison of the Second Quarter of 2026 and the Second Quarter of 2025
| Second Quarter of 2026 | Second Quarter of 2025 | ||||||||||||||||||||||||||||||||||
| Amount | % to Net Sales | % to Total Revenue | Amount | % to Net Sales | % to Total Revenue | ||||||||||||||||||||||||||||||
| (dollars in millions, except per share figures) | |||||||||||||||||||||||||||||||||||
| Net sales | $ | 4,866 | $ | 4,812 | |||||||||||||||||||||||||||||||
| Other revenue | 193 | 4.0 | % | 187 | 3.9 | % | |||||||||||||||||||||||||||||
| Total revenue | 5,059 | 4,999 | |||||||||||||||||||||||||||||||||
| Cost of sales | (2,848) | (58.5) | % | (2,900) | (60.3) | % | |||||||||||||||||||||||||||||
| Selling, general and administrative expenses | (1,960) | (38.7) | % | (1,944) | (38.9) | % | |||||||||||||||||||||||||||||
| Gains on sale of real estate | 9 | 0.2 | % | 16 | 0.3 | % | |||||||||||||||||||||||||||||
| Impairment, restructuring and other costs | (16) | (0.3) | % | (22) | (0.4) | % | |||||||||||||||||||||||||||||
| Operating income | $ | 244 | 4.8 | % | $ | 149 | 3.0 | % | |||||||||||||||||||||||||||
| Net income | $ | 169 | $ | 87 | |||||||||||||||||||||||||||||||
| Diluted earnings per share | $ | 0.62 | $ | 0.31 | |||||||||||||||||||||||||||||||
| Supplemental Financial Measures | |||||||||||||||||||||||||||||||||||
Gross margin | $ | 2,018 | 41.5 | % | $ | 1,912 | 39.7 | % | |||||||||||||||||||||||||||
| Digital sales as a percentage of net sales | 31 | % | 31 | % | |||||||||||||||||||||||||||||||
| Supplemental Non-GAAP Financial Measures | |||||||||||||||||||||||||||||||||||
| Adjusted net income | $ | 170 | $ | 98 | |||||||||||||||||||||||||||||||
| Adjusted diluted earnings per share | $ | 0.63 | $ | 0.35 | |||||||||||||||||||||||||||||||
| Adjusted EBIT | $ | 251 | $ | 155 | |||||||||||||||||||||||||||||||
| Adjusted EBITDA | $ | 457 | $ | 373 | |||||||||||||||||||||||||||||||
See pages 26 to 27 for reconciliations of the supplemental non-GAAP financial measures to their most comparable GAAP financial measure and for other important information.
| Second Quarter of 2026 | Second Quarter of 2025 | |||||||||||
| Net sales | $ | 4,866 | $ | 4,812 | ||||||||
| Change in comparable sales | 2.7 | % | 1.9 | % | ||||||||
| Digital sales as a percent of net sales | 31 | % | 31 | % | ||||||||
Net sales for the second quarter of 2026 increased $54 million, or 1.1%, compared to the second quarter of 2025. Excluding the $35 million impact of the 14 non-go-forward locations closed at the end of fiscal 2025, net sales grew 1.9%. The increase in net sales was driven by comparable sales growth at all three nameplates. Macy's outperformed in many categories including watches, dresses, petites, career sportswear, kids, handbags, fragrances and men's and women's shoes. Big-ticket categories underperformed compared to the second quarter of 2025 but improved compared to the first quarter of 2026.
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| Second Quarter of 2026 | Second Quarter of 2025 | |||||||||||||||||||||||
| $ | % to Net Sales | $ | % to Net Sales | |||||||||||||||||||||
| Credit card revenues, net | $ | 156 | 3.2 | % | $ | 153 | 3.2 | % | ||||||||||||||||
| Macy's Media Network, net | 37 | 0.8 | % | 34 | 0.7 | % | ||||||||||||||||||
| Other revenue | $ | 193 | 4.0 | % | $ | 187 | 3.9 | % | ||||||||||||||||
Other revenues increased 3.2% compared to the second quarter of 2025. Credit card revenue increased 2.0% driven by a healthy credit portfolio and stable net credit card losses. Macy's Media Network revenues were 8.8% above the second quarter of 2025, reflecting partner engagement on our advertising platform.
| Second Quarter of 2026 | Second Quarter of 2025 | |||||||||||||||||||||||
| $ | % to Net Sales | $ | % to Net Sales | |||||||||||||||||||||
| Cost of sales | $ | (2,848) | 58.5 | % | $ | (2,900) | 60.3 | % | ||||||||||||||||
| Gross margin | $ | 2,018 | 41.5 | % | $ | 1,912 | 39.7 | % | ||||||||||||||||
Gross margin rate increased 180 basis points in the second quarter of 2026 compared to the second quarter of 2025 mainly driven by gross tariff refunds of approximately $95 million.
| Second Quarter of 2026 | Second Quarter of 2025 | |||||||||||
| SG&A expenses | $ | (1,960) | $ | (1,944) | ||||||||
| As a percent to total revenue | 38.7 | % | 38.9 | % | ||||||||
Selling, general and administrative ("SG&A") expenses increased $16 million, or 0.8%, in the second quarter of 2026 compared to the second quarter of 2025 due to higher variable costs driven by sales growth as well as investments in Bold New Chapter initiatives. These investments were partially offset by ongoing cost containment efforts. The decrease in SG&A expenses as a percent of total revenue in the second quarter of 2026 compared to the second quarter of 2025 was primarily driven by improved operating leverage from a higher total revenue base, together with disciplined expense management.
| Second Quarter of 2026 | Second Quarter of 2025 | |||||||||||
| Gains on sale of real estate | $ | 9 | $ | 16 | ||||||||
Asset sale gains in both the second quarter of 2026 and 2025 primarily reflect the monetization of store locations.
| Second Quarter of 2026 | Second Quarter of 2025 | |||||||||||
| Impairment, restructuring and other costs | $ | (16) | $ | (22) | ||||||||
The $16 million and $22 million of impairment, restructuring and other costs recognized in the second quarter of 2026 and the second quarter of 2025, respectively, primarily relate to store closure costs.
| Second Quarter of 2026 | Second Quarter of 2025 | |||||||||||
| Net interest expense | $ | (23) | $ | (25) | ||||||||
The decrease in net interest expense in the second quarter of 2026 compared to the second quarter of 2025 was primarily driven by an increase in interest income as the Company received $3 million in interest from tariff refunds in the second quarter of 2026.
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MACY'S, INC.
| Second Quarter of 2026 | Second Quarter of 2025 | |||||||||||
| Effective tax rate | 25.6 | % | 24.3 | % | ||||||||
| Federal income statutory rate | 21 | % | 21 | % | ||||||||
Income tax expense of $58 million, or 25.6% of pretax income, for the second quarter of 2026 and expense of $28 million, or 24.3% of pretax income, for the second quarter of 2025, reflect a different effective tax rate compared to the Company’s federal income tax statutory rate of 21%. The income tax effective rates for both the second quarter of 2026 and 2025 were impacted primarily by the effect of state and local taxes.
Comparison of the 26 Weeks Ended August 1, 2026 and August 2, 2025
| 26 Weeks Ended August 1, 2026 | 26 Weeks Ended August 2, 2025 | ||||||||||||||||||||||||||||||||||
| Amount | % to Net Sales | % to Total Revenue | Amount | % to Net Sales | % to Total Revenue | ||||||||||||||||||||||||||||||
| (dollars in millions, except per share figures) | |||||||||||||||||||||||||||||||||||
| Net sales | $ | 9,548 | $ | 9,411 | |||||||||||||||||||||||||||||||
| Other revenue | 403 | 4.2 | % | 380 | 4.0 | % | |||||||||||||||||||||||||||||
| Total revenue | 9,951 | 9,791 | |||||||||||||||||||||||||||||||||
| Cost of sales | (5,708) | (59.8) | % | (5,695) | (60.5) | % | |||||||||||||||||||||||||||||
| Selling, general and administrative expenses | (3,911) | (39.3) | % | (3,856) | (39.4) | % | |||||||||||||||||||||||||||||
| Gains on sale of real estate | 23 | 0.2 | % | 32 | 0.3 | % | |||||||||||||||||||||||||||||
| Impairment, restructuring and other benefits (costs) | 1 | — | % | (30) | (0.3) | % | |||||||||||||||||||||||||||||
| Operating income | $ | 356 | 3.6 | % | $ | 242 | 2.5 | % | |||||||||||||||||||||||||||
| Net income | $ | 232 | $ | 124 | |||||||||||||||||||||||||||||||
| Diluted earnings per share | $ | 0.85 | $ | 0.44 | |||||||||||||||||||||||||||||||
| Supplemental Financial Measures | |||||||||||||||||||||||||||||||||||
| Gross margin | $ | 3,840 | 40.2 | % | $ | 3,716 | 39.5 | % | |||||||||||||||||||||||||||
| Digital sales as a percentage of net sales | 32 | % | 32 | % | |||||||||||||||||||||||||||||||
| Supplemental Non-GAAP Financial Measures | |||||||||||||||||||||||||||||||||||
| Adjusted net income | $ | 205 | $ | 129 | |||||||||||||||||||||||||||||||
| Adjusted diluted earnings per share | $ | 0.75 | $ | 0.46 | |||||||||||||||||||||||||||||||
| Adjusted EBIT | $ | 332 | $ | 240 | |||||||||||||||||||||||||||||||
| Adjusted EBITDA | $ | 748 | $ | 677 | |||||||||||||||||||||||||||||||
See pages 26 to 27 for reconciliations of the supplemental non-GAAP financial measures to their most comparable GAAP financial measure and for other important information.
| 2026 | 2025 | |||||||||||
| Net sales | $ | 9,548 | $ | 9,411 | ||||||||
| Change in comparable sales | 2.8 | % | 0.3 | % | ||||||||
| Digital sales as a percent of net sales | 32 | % | 32 | % | ||||||||
Net sales for 2026 increased $137 million, or 1.5%, compared to 2025. Excluding the $75 million impact of the 14 non-go-forward locations closed at the end of fiscal 2025, net sales grew 2.3%. The increase in net sales was driven by comparable sales growth at all three nameplates. Macy's outperformed in many categories including watches, dresses, petites, career sportswear, kids, handbags, fragrances and men's and women's shoes. Big ticket and plus size categories underperformed compared to 2025.
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MACY'S, INC.
| 2026 | 2025 | |||||||||||||||||||||||
| $ | % to Net Sales | $ | % to Net Sales | |||||||||||||||||||||
| Credit card revenues, net | $ | 328 | 3.4 | % | $ | 306 | 3.2 | % | ||||||||||||||||
| Macy's Media Network, net | 75 | 0.8 | % | 74 | 0.8 | % | ||||||||||||||||||
| Other revenue | $ | 403 | 4.2 | % | $ | 380 | 4.0 | % | ||||||||||||||||
The increase in other revenues included a $22 million increase in credit card revenues, reflecting the continued strength of the credit portfolio and prudent management of net credit losses. Macy's Media Network revenues were roughly flat compared to 2025.
| 2026 | 2025 | |||||||||||||||||||||||
| $ | % to Net Sales | $ | % to Net Sales | |||||||||||||||||||||
| Cost of sales | $ | (5,708) | 59.8 | % | $ | (5,695) | 60.5 | % | ||||||||||||||||
| Gross margin | $ | 3,840 | 40.2 | % | $ | 3,716 | 39.5 | % | ||||||||||||||||
Gross margin rate increased 70 basis points in 2026 compared to 2025. The increase in gross margin was primarily driven by the benefit of approximately $95 million received in gross tariff refunds in the second quarter of 2026.
| 2026 | 2025 | |||||||||||
| SG&A expenses | $ | (3,911) | $ | (3,856) | ||||||||
| As a percent to total revenue | 39.3 | % | 39.4 | % | ||||||||
SG&A expenses increased $55 million, or 1.4%, in 2026 compared to 2025 due to higher variable costs driven by sales growth as well as continuing investments in Bold New Chapter initiatives. The decrease in SG&A expenses as a percent of total revenue in 2026 compared to 2025 was primarily driven by improved operating leverage from a higher total revenue base, together with disciplined expense management.
| 2026 | 2025 | |||||||||||
| Gains on sale of real estate | $ | |||||||||||
Next expected filings
- ~2026-12-10 10-Q expected by 2026-12-17 (in 47 days)
- ~2027-03-26 10-K expected by 2027-03-30 (in 153 days)
- ~2027-06-04 10-Q expected by 2027-06-11 (in 223 days)
- ~2027-09-10 10-Q expected by 2027-09-17 (in 321 days)
Predicted from historical filing cadence; not an SEC commitment.
Recent SEC filings
- 2026-10-23 8-K Officer/Director Change
- 2026-09-10 8-K Earnings Release; Financial Statements and Exhibits
- 2026-09-10 10-Q Quarterly Report
- 2026-06-04 10-Q Quarterly Report
- 2026-06-03 8-K Earnings Release; Financial Statements and Exhibits
- 2026-05-27 S-8 Employee Benefit Plan Registration
- 2026-05-18 8-K Officer/Director Change; Shareholder Vote Results
- 2026-03-27 10-K Annual Report
- 2026-03-26 8-K Officer/Director Change
- 2026-03-18 8-K Earnings Release; Financial Statements and Exhibits
- 2026-02-27 8-K Other Events
- 2025-12-12 8-K Officer/Director Change
- 2025-12-10 10-Q Quarterly Report
- 2025-12-03 8-K/A Earnings Release; Financial Statements and Exhibits
- 2025-12-03 8-K Earnings Release; Financial Statements and Exhibits