Macy’s stock fell sharply on Thursday even after the department store giant beat Wall Street expectations, delivered growth across all three of its major brands and raised its full-year guidance.
Shares of Macy’s closed Sept. 10 at $20.50, down 4.70%. The stock showed signs of stabilizing Friday morning by rising about 0.6% in pre-market trading to $20.63.
Macy’s stock price (Source: CoinCodex)
The selloff came despite a stronger-than-expected fiscal second quarter. Macy’s reported revenue of $4.87 billion, ahead of the $4.83 billion expected by analysts. Companywide comparable sales increased 2.7%, which was the fifth consecutive quarter of comparable-sales growth.
Macy’s namesake stores recorded 1.1% comparable-sales growth, while its revamped “Reimagine 200” locations grew 1.9%. Higher-end Bloomingdale’s was the standout performer, with comparable sales jumping 11.3% and reaching the highest second-quarter sales volume in the brand’s history. Bluemercury comparable sales increased 6.2%.
(Source: Macy’s newsroom)
Why Did Macy’s Stock Fall?
One concern for investors was Macy’s near-term profitability outlook. The retailer expects an adjusted loss of between 19 cents and 23 cents per share in the third quarter, which is much worse than the roughly 6-cent loss analysts expected.
Macy’s reported adjusted earnings of 63 cents per share for the second quarter, including a 23-cent net benefit from tariff refunds. Excluding that benefit, adjusted EPS was 40 cents, still ahead of the 37 cents expected by Wall Street. Net income nearly doubled to $169 million from $87 million a year earlier.
The retailer has received $116 million in tariff refunds and plans to reinvest approximately $96 million into customer experience improvements and its “Bold New Chapter” turnaround strategy.
Macy’s nevertheless raised its 2026 outlook. It now expects net sales of $21.675 billion to $21.825 billion, compared with its previous $21.5 billion to $21.75 billion forecast. Comparable sales are expected to increase between 1% and 1.5%, while adjusted EPS is projected at $2.15 to $2.35.
Overall, the results suggest Macy’s turnaround is gaining traction, particularly at Bloomingdale’s and its redesigned stores.
