After receiving tariff refunds from the U.S. government, Macy’s Inc. is channeling those funds into long-term initiatives focused on growth and transformation, as reflected in its second-quarter results that demonstrated steady improvements across multiple brands.
Broad-Based Strength Seen Across the Macy’s Inc. Portfolio
For the second quarter of 2026, net sales at Macy’s Inc. increased 1.1% to $4.9 billion, highlighting the retailer’s ongoing recovery. The company’s official release stated that comparable sales overall rose 2.7%, with Macy’s stores specifically advancing 1.1%. Among the 200 recently refreshed Macy’s stores, comparable sales growth was nearly two times higher, approaching an increase of 2%.
Results at other banners outpaced those at the Macy’s chain itself. Bloomingdale’s delivered more than 11% growth in comparable sales, while Bluemercury posted an over 6% increase for the same metric.
Strategic Deployment of Tariff Refunds
During the quarter, gross margin rose by 180 basis points to reach 41.5% at Macy’s Inc., buoyed in part by tariff refunds from the U.S. government. Even discounting the influence of these refunds, the gross margin still improved by 10 basis points versus last year. Net income for the period nearly doubled year-over-year to $169 million.
The business reported receipt of the complete expected tariff refund sum of $116 million. While only about $20 million from this amount will contribute to the current quarter’s earnings, most of the funds are earmarked for purposes such as enhancing brands, accelerating select store transformations, and managing fuel price risks. Some limited price cuts are planned—for example, on furniture and fine jewelry—but Macy’s intends to use the windfall to strengthen its future competitiveness rather than join widespread discounting by rivals.
Building Positive Momentum Leading into the Holidays
Chief Executive Tony Spring revealed that the company has now experienced six consecutive quarters of exceeding market expectations, along with five quarters in a row of comparable sales gains and two quarters back-to-back of net sales growth. Spring attributed Macy’s momentum not just to the Macy’s brand but also to robust results from Bloomingdale’s and Bluemercury, crediting its “multi-brand, multi-category, and multi-channel” approach as a strategic edge.
Neil Saunders from GlobalData remarked that the era of disappointing earnings reports appears to be behind Macy’s, signifying a successful turnaround. Suzy Davidkhanian, Vice President at Emarketer, also voiced optimism, noting that Macy’s “mix of sought-after national brands, innovation, and private label” is fueling stronger demand and greater operational discipline. She suggested this strengthens Macy’s position ahead of the crucial holiday season, where department stores traditionally see peak traffic.
Michael Binetti and his team at Evercore ISI endorsed the way Macy’s handled its tariff refund, emphasizing in a recent research note that Macy’s “Reimagine” strategy offers a healthier approach to pricing amid intense competition during the fall and holiday retail periods, rather than relying on heavy discounting.
Countdown Begins for Macy’s Centennial Parade
This second-quarter performance comes as Macy’s prepares for its milestone 100th Thanksgiving Day parade, set to take place in less than 77 days, as highlighted in company announcements. The event is expected to further raise the company’s profile at a pivotal time during the holiday shopping rush.
Macy’s recognizes there is still work ahead, largely concerning its flagship stores, but persistent comparable sales growth demonstrates robust momentum. As the holiday quarter draws near, the company’s deployment of its tariff refunds and focus on transformation signal an emphasis on sustainable, long-range success rather than temporary pricing actions.