Macy's, Inc. Announces Quarterly Dividend of $0.19 (NYSE:M)

Key Points

• Macy’s declared a quarterly dividend of $0.1915 per share, payable October 1 to shareholders of record September 15, representing an annualized yield of approximately 3.5%. The dividend appears well covered, with a current payout ratio of 40.4%.
• The retailer exceeded quarterly earnings and revenue expectations, reporting $0.63 in EPS and $5.06 billion in revenue, while revenue increased 1.1% year over year. Macy’s also raised its fiscal 2026 outlook to $2.15–$2.35 in EPS and approximately $21.7–$21.8 billion in revenue.
• Despite the strong quarter and improved guidance, investors remain concerned about a projected third-quarter adjusted loss of $0.19–$0.23 per share, wider than analysts’ expectations, as well as execution risks in the company’s ongoing turnaround.

Macy's, Inc. (NYSE:M - Get Free Report) declared a quarterly dividend on Friday, August 28th. Stockholders of record on Tuesday, September 15th will be paid a dividend of 0.1915 per share on Thursday, October 1st. This represents a c) annualized dividend and a dividend yield of 3.5%. The ex-dividend date of this dividend is Tuesday, September 15th.

Macy's has increased its dividend payment by an average of 0.1%annually over the last three years and has raised its dividend every year for the last 4 years. Macy's has a dividend payout ratio of 40.4% indicating that its dividend is sufficiently covered by earnings. Equities research analysts expect Macy's to earn $2.39 per share next year, which means the company should continue to be able to cover its $0.76 annual dividend with an expected future payout ratio of 31.8%.

Macy's Trading Up 7.5%

Shares of M traded up $1.53 during mid-day trading on Friday, reaching $22.03. The stock had a trading volume of 10,273,860 shares, compared to its average volume of 5,847,674. Macy's has a 52-week low of $16.41 and a 52-week high of $26.58. The firm has a market cap of $5.79 billion, a price-to-earnings ratio of 8.07 and a beta of 1.41. The business's fifty day moving average is $23.47 and its 200 day moving average is $21.43. The company has a debt-to-equity ratio of 0.49, a current ratio of 1.59 and a quick ratio of 0.44.

Macy's (NYSE:M - Get Free Report) last issued its earnings results on Thursday, September 10th. The company reported $0.63 EPS for the quarter, topping analysts' consensus estimates of $0.37 by $0.26. The company had revenue of $5.06 billion for the quarter, compared to the consensus estimate of $4.81 billion. Macy's had a net margin of 3.29% and a return on equity of 13.21%. Macy's's quarterly revenue was up 1.1% compared to the same quarter last year. During the same period in the previous year, the firm earned $0.41 earnings per share. Macy's has set its Q3 2026 guidance at -0.230--0.190 EPS and its FY 2026 guidance at 2.150-2.350 EPS. On average, sell-side analysts predict that Macy's will post 2.28 EPS for the current fiscal year.

Key Stories Impacting Macy's

Here are the key news stories impacting Macy's this week:

• Positive Sentiment: Macy’s exceeded analysts’ expectations for second-quarter earnings and revenue. Reported adjusted EPS was approximately $0.40 versus the $0.37 consensus, while revenue rose 1.1% year over year to roughly $4.9 billion. The company also reported growth across its major nameplates. Macy's Q2 Earnings and Revenues Beat Estimates
• Positive Sentiment: The retailer raised its fiscal 2026 outlook, projecting EPS of $2.15-$2.35 versus a $2.11 consensus and revenue of approximately $21.7-$21.8 billion, above the $21.1 billion consensus. Its sales outlook was supported by higher comparable sales expectations and continued demand from middle- and higher-income customers. Macy's Posts Strong Results and Raises Guidance
• Positive Sentiment: Management said premium merchandise and tariff refunds helped results. The improving sales trend and a roughly 3.5% dividend yield may appeal to income-focused investors if the turnaround continues and cash generation remains solid. Premium Goods Drive Sales Growth
• Neutral Sentiment: BTIG Research reaffirmed its “neutral” rating, indicating that the earnings improvement and valuation are balanced by execution risks in the ongoing turnaround. BTIG Research Rating
• Negative Sentiment: Despite the beat and guidance increase, investors initially focused on Macy’s projected third-quarter adjusted loss of $0.19-$0.23 per share, which is wider than the $0.12 consensus loss. Softer near-term comparable-sales expectations and broader market weakness also pressured sentiment. Macy's Stock and Fiscal 2026 Outlook

About Macy's

Macy's, Inc is an American omnichannel retailer that sells a broad range of merchandise through department stores, specialty stores and digital platforms. Its product offerings include apparel, accessories, beauty products, home furnishings, jewelry, furniture and other consumer goods.

The company operates through several well-known retail banners, including Macy's, Bloomingdale's and Bluemercury. Macy's serves customers primarily in the United States through its stores and e-commerce websites, while Bloomingdale's offers fashion, accessories, beauty and home merchandise through department stores, outlets and digital channels.

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