Macy's shares gain momentum as the retailer raises its full-year earnings and sales outlook following a Q2 profit surge driven by tariff refunds and double-digit growth at Bloomingdale's.
Macy's raised full-year guidance after Q2 profit nearly doubled, driven by tariff refunds and strong luxury sales.
Macy's reported a strong second quarter with net income nearly doubling to $169 million, bolstered by $0.23 per share in tariff refunds and robust luxury demand. Bloomingdale's led the performance with an 11.3% increase in comparable sales, prompting the retailer to lift its full-year net sales forecast to a range of $21.68 billion to $21.83 billion.
The profit surge was primarily driven by a combination of strong luxury sales at Bloomingdale's and the receipt of tariff refunds under the International Emergency Economic Powers Act.
Macy's plans to reinvest the majority of the $116 million total refund, with approximately $20 million flowing into full-year earnings and the remainder supporting the 'Bold New Chapter' strategic initiatives.