Macy's (NYSE:M) Releases Quarterly Earnings Results, Beats Expectations By $0.26 EPS

Key Points

• Macy’s beat quarterly expectations, reporting EPS of $0.63 versus the $0.37 consensus and revenue of $5.06 billion compared with estimates of $4.81 billion.
• The retailer raised its full-year sales outlook to $21.68 billion-$21.83 billion and said comparable sales improved across all of its nameplates, supporting its ongoing turnaround.
• Macy’s declared a quarterly dividend of $0.1915, equivalent to $0.77 annually and a 3.6% yield; shares were trading down 4.2% despite the earnings beat, while analysts maintained a consensus “Hold” rating.

Macy's (NYSE:M - Get Free Report) released its quarterly earnings data on Thursday. The company reported $0.63 earnings per share (EPS) for the quarter, beating analysts' consensus estimates of $0.37 by $0.26, FiscalAI reports. The firm 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 2.94% and a return on equity of 13.68%.

Macy's Trading Down 4.2%

Macy's stock opened at $21.51 on Thursday. The company has a debt-to-equity ratio of 0.50, a quick ratio of 0.44 and a current ratio of 1.48. The stock has a market cap of $5.66 billion, a PE ratio of 8.89 and a beta of 1.41. The stock has a 50-day moving average of $23.55 and a two-hundred day moving average of $21.44. Macy's has a one year low of $16.41 and a one year high of $26.58.

Macy's Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Thursday, October 1st. Shareholders of record on Tuesday, September 15th will be paid a $0.1915 dividend. The ex-dividend date is Tuesday, September 15th. This represents a $0.77 dividend on an annualized basis and a yield of 3.6%. Macy's's dividend payout ratio (DPR) is 31.82%.

Macy's News Summary

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

• Positive Sentiment: Macy’s reported adjusted earnings of $0.63 per share, well above the $0.37 analyst consensus, while revenue of $5.06 billion exceeded expectations of $4.81 billion. The company also reported a 2.94% net margin and 13.68% return on equity. Macy’s second-quarter 2026 press release
• Positive Sentiment: The retailer raised its full-year net-sales outlook to $21.68 billion-$21.83 billion, up from its prior forecast of $21.5 billion-$21.75 billion. Macy’s also increased its comparable-sales guidance, indicating that customer demand is holding up better than previously expected. Macy’s raises full-year outlook
• Positive Sentiment: Management said growth continued across all of Macy’s nameplates, while comparable sales increased. The combination of sales momentum, an earnings beat and improved guidance reinforces the view that the company’s turnaround is beginning to take hold. CNBC report on Macy’s second-quarter results
• Neutral Sentiment: Trading activity ahead of the report was unusually bullish, with investors purchasing 16,077 call options—about 39% above average volume. This may amplify short-term volatility but does not by itself change Macy’s underlying business outlook.

Wall Street Analysts Forecast Growth

A number of analysts have weighed in on M shares. UBS Group upped their target price on Macy's from $9.00 to $10.00 and gave the stock a "sell" rating in a report on Wednesday, August 26th. JPMorgan Chase & Co. upped their price objective on Macy's from $21.00 to $27.00 and gave the stock a "neutral" rating in a research note on Thursday, June 4th. Evercore set a $22.00 target price on Macy's in a research note on Thursday, June 4th. Citigroup increased their price target on shares of Macy's from $22.00 to $24.00 and gave the company a "neutral" rating in a research report on Tuesday, August 25th. Finally, Morgan Stanley reaffirmed an "overweight" rating and issued a $30.00 price objective on shares of Macy's in a research report on Monday, July 6th. One equities research analyst has rated the stock with a Strong Buy rating, three have given a Buy rating, seven have given a Hold rating and two have issued a Sell rating to the company's stock. According to data from MarketBeat.com, the stock currently has an average rating of "Hold" and a consensus price target of $22.78.

Insider Transactions at Macy's

In related news, EVP Thomas Edwards, Jr. sold 16,419 shares of the stock in a transaction that occurred on Wednesday, June 24th. The shares were sold at an average price of $24.89, for a total value of $408,668.91. Following the completion of the transaction, the executive vice president directly owned 20,000 shares of the company's stock, valued at $497,800. This trade represents a 45.08% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available through this hyperlink. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, SVP Paul Griscom sold 10,077 shares of Macy's stock in a transaction that occurred on Thursday, June 25th. The stock was sold at an average price of $25.63, for a total transaction of $258,273.51. Following the completion of the sale, the senior vice president owned 25,373 shares of the company's stock, valued at $650,309.99. This trade represents a 28.43% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. 1.05% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

A number of hedge funds have recently bought and sold shares of M. Dimensional Fund Advisors LP lifted its stake in shares of Macy's by 3.2% during the fourth quarter. Dimensional Fund Advisors LP now owns 16,145,972 shares of the company's stock worth $356,020,000 after buying an additional 494,280 shares during the period. State Street Corp grew its holdings in shares of Macy's by 0.5% during the second quarter. State Street Corp now owns 9,420,372 shares of the company's stock valued at $111,547,000 after buying an additional 45,997 shares during the last quarter. Arrowstreet Capital Limited Partnership grew its holdings in shares of Macy's by 39.9% during the third quarter. Arrowstreet Capital Limited Partnership now owns 5,950,950 shares of the company's stock valued at $106,701,000 after buying an additional 1,697,412 shares during the last quarter. Invesco Ltd. increased its position in shares of Macy's by 160.5% in the 2nd quarter. Invesco Ltd. now owns 4,283,107 shares of the company's stock valued at $49,941,000 after acquiring an additional 2,639,132 shares during the period. Finally, AQR Capital Management LLC increased its position in shares of Macy's by 42.7% in the 4th quarter. AQR Capital Management LLC now owns 4,000,339 shares of the company's stock valued at $87,687,000 after acquiring an additional 1,197,785 shares during the period. Institutional investors and hedge funds own 87.36% of the company's stock.

Macy's Company Profile

Macy's, Inc is a leading American omnichannel retailer operating under the Macy's brand, as well as specialty divisions Bloomingdale's and Bluemercury. The company's retail portfolio encompasses full-line department stores, fashion-focused specialty outlets and a high-end beauty chain, offering consumers a wide array of apparel, footwear, accessories, cosmetics and home furnishings. Through its integrated network of physical stores and digital platforms, Macy's seeks to deliver a seamless shopping experience that blends in-store service with online convenience.

The company's product assortment spans men's, women's and children's clothing, beauty and personal care products, housewares and home décor.

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