Macy's (NYSE:M) Shares Up 6.7% Following Strong Earnings

Key Points

• Macy’s beat quarterly expectations: Earnings reached $0.63 per share versus the $0.37 consensus, while revenue rose 1.1% year over year to $5.06 billion. Shares climbed 6.7% following the results.
• Full-year guidance was raised: Macy’s set fiscal 2026 EPS guidance at $2.15–$2.35 and increased its revenue outlook, supported by stronger premium-merchandise sales and spending from middle- and high-income customers.
• Near-term risks remain: Third-quarter EPS guidance calls for a $0.19–$0.23 loss, weaker than analysts expected, while the company declared a quarterly dividend of $0.1915 per share, yielding approximately 3.5% annually.

Shares of Macy's, Inc. (NYSE:M - Get Free Report) traded up 6.7% during mid-day trading on Friday after the company announced better than expected quarterly earnings. The company traded as high as $21.65 and last traded at $21.8670. Approximately 4,855,123 shares traded hands during mid-day trading, a decline of 24% from the average session volume of 6,429,299 shares. The stock had previously closed at $20.50.

The company reported $0.63 earnings per share for the quarter, beating analysts' consensus estimates of $0.37 by $0.26. Macy's had a return on equity of 13.68% and a net margin of 2.94%.The company had revenue of $5.06 billion for the quarter, compared to the consensus estimate of $4.81 billion. During the same period in the previous year, the business earned $0.41 earnings per share. The company's quarterly revenue was up 1.1% on a year-over-year basis. 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.

Macy's Announces Dividend

The company also recently declared a quarterly dividend, which will be paid on Thursday, October 1st. Investors of record on Tuesday, September 15th will be issued a dividend of $0.1915 per share. This represents a $0.77 annualized dividend and a yield of 3.5%. The ex-dividend date of this dividend is Tuesday, September 15th. Macy's's dividend payout ratio (DPR) is currently 31.40%.

Macy's News Summary

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

• Positive Sentiment: Macy’s reported second-quarter earnings and revenue above Wall Street expectations. Revenue increased 1.1% year over year to approximately $4.9 billion, while adjusted EPS was about $0.40 versus the $0.37 consensus estimate. Macy's Q2 Earnings and Revenues Beat Estimates
• Positive Sentiment: The company raised fiscal 2026 revenue guidance to roughly $21.68 billion-$21.83 billion and EPS guidance to $2.15-$2.35, above the prior outlook and analyst consensus. Management also increased its comparable-sales expectations. Macy's Raises Full-Year Outlook Again on Sales Growth
• Positive Sentiment: Growth in premium merchandise and stronger spending from middle- and high-income customers supported sales across Macy’s brands. Tariff refunds also contributed to the improved profit outlook. Macy's Raises Outlook as Premium Goods Drive Sales Growth
• Positive Sentiment: The post-earnings pullback has increased the appeal of Macy’s roughly 3.5% dividend yield for income-oriented investors, provided the turnaround and cash generation continue to improve. Should Income Investors Buy the Dip in Macy's Stock
• Neutral Sentiment: BTIG Research reaffirmed its “neutral” rating, indicating that the improved annual outlook may already be balanced by execution and consumer-demand risks. Crude Oil Surges; Macy's Shares Fall After Q2 Results
• Negative Sentiment: Fiscal third-quarter EPS guidance of a $0.19-$0.23 loss was materially weaker than the roughly $0.12 loss analysts expected, while comparable-sales momentum was viewed as less robust. That near-term earnings risk overshadowed the full-year guidance increase and led to a post-earnings decline in the stock.

Analyst Upgrades and Downgrades

A number of equities research analysts recently weighed in on M shares. JPMorgan Chase & Co. raised their price target on Macy's from $21.00 to $27.00 and gave the company a "neutral" rating in a report on Thursday, June 4th. Citigroup upped their target price on shares of Macy's from $22.00 to $24.00 and gave the stock a "neutral" rating in a research report on Tuesday, August 25th. Morgan Stanley reiterated an "overweight" rating and issued a $30.00 price objective on shares of Macy's in a research report on Monday, July 6th. Evercore set a $22.00 price objective on Macy's in a research report on Thursday, June 4th. Finally, Zacks Research upgraded shares of Macy's from a "hold" rating to a "strong-buy" rating in a research report on Monday, July 27th. One equities research analyst has rated the stock with a Strong Buy rating, three have assigned a Buy rating, seven have issued a Hold rating and two have given a Sell rating to the company's stock. According to data from MarketBeat.com, Macy's presently has an average rating of "Hold" and an average price target of $22.78.

Insiders Place Their Bets

In other Macy's news, EVP Thomas Edwards, Jr. sold 16,419 shares of the business's stock in a transaction dated Wednesday, June 24th. The stock was 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 approximately $497,800. The trade was a 45.08% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. 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 the firm's stock in a transaction 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 sale, the senior vice president owned 25,373 shares in the company, valued at approximately $650,309.99. The trade was 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 owned by corporate insiders.

Institutional Trading of Macy's

Hedge funds and other institutional investors have recently modified their holdings of the company. Smartleaf Asset Management LLC raised its holdings in shares of Macy's by 51.7% in the fourth quarter. Smartleaf Asset Management LLC now owns 1,543 shares of the company's stock valued at $34,000 after purchasing an additional 526 shares during the last quarter. CIBC Private Wealth Group LLC increased its stake in Macy's by 35.9% in the 4th quarter. CIBC Private Wealth Group LLC now owns 1,838 shares of the company's stock valued at $41,000 after buying an additional 486 shares during the last quarter. Allworth Financial LP increased its stake in Macy's by 37.0% in the 2nd quarter. Allworth Financial LP now owns 2,270 shares of the company's stock valued at $53,000 after buying an additional 613 shares during the last quarter. IFP Advisors Inc lifted its position in Macy's by 263.3% during the 4th quarter. IFP Advisors Inc now owns 2,427 shares of the company's stock worth $54,000 after buying an additional 1,759 shares in the last quarter. Finally, Aster Capital Management DIFC Ltd bought a new stake in Macy's during the 4th quarter worth about $54,000. Institutional investors and hedge funds own 87.36% of the company's stock.

Macy's Stock Performance

The company has a market capitalization of $5.75 billion, a price-to-earnings ratio of 9.01 and a beta of 1.41. The stock's 50 day moving average price is $23.49 and its 200 day moving average price is $21.42. The company has a current ratio of 1.48, a quick ratio of 0.44 and a debt-to-equity ratio of 0.50.

Macy's Company Profile

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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