Sept 10 (Reuters) – Macy’s raised its annual sales and profit forecasts on Thursday after stronger performance at its upmarket Bloomingdale’s and Bluemercury chains as higher-income shoppers keep spending despite an uncertain economic backdrop. Shares of the company, which also reported a quarterly results beat, were up about 5% in premarket trading. Under CEO Tony […]
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Macy’s raises annual targets as Bloomingdale’s drives growth
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Sept 10 (Reuters) – Macy’s raised its annual sales and profit forecasts on Thursday after stronger performance at its upmarket Bloomingdale’s and Bluemercury chains as higher-income shoppers keep spending despite an uncertain economic backdrop.
Shares of the company, which also reported a quarterly results beat, were up about 5% in premarket trading.
Under CEO Tony Spring, the department-store operator has been pursuing a turnaround focused on its higher-end businesses, which continue to benefit from demand for luxury apparel, handbags, fragrances, cosmetics and skincare products, while growth at its namesake stores, which depend more heavily on value-conscious middle-income shoppers, lags.
Spring’s “Bold New Chapter” strategy, launched in 2024, has prioritized higher-margin products and full-price sales, closing underperforming stores and redirecting resources toward stronger markets to improve profitability.
“The investments we’re making are driving results across our portfolio,” Spring said in a statement.
Macy’s now expects fiscal 2026 net sales between $21.68 billion and $21.83 billion, compared with its prior forecast of $21.50 billion to $21.75 billion. It also sees annual adjusted earnings per share of $2.15 to $2.35, compared with its previous outlook of $2.00 to $2.20 per share.
The company said its forecasts reflect macroeconomic and geopolitical uncertainties that could affect consumer spending, as well as the benefits of tariff refunds.
Second-quarter sales rose 1.1% to $4.87 billion, topping analysts’ estimate of $4.83 billion, according to data compiled by LSEG.
Comparable sales at Bloomingdale’s, which sells luxury apparel, footwear and accessories, rose 11.3%. Those at Bluemercury, which sells beauty and skincare products, grew 6.2%, compared with a 1.1% increase at Macy’s namesake stores.
Adjusted quarterly profit rose 80% to 63 cents per share. Macy’s said tariff refunds contributed 23 cents per share to earnings and that it has received $116 million in refunds so far.
(Reporting by Neil J Kanatt in Bengaluru and Danielle Kaye in New York; Editing by Pooja Desai)