Sep 10, 2026 earnings call — Quarterly results and strategic progress
Raised full-year outlook after Q2 beat; adjusted EPS of $0.63 and net sales of $4.9 billion in Q2.
Revenue $4.9B (est $4.8B) · EPS $0.63 (est $0.37) · Next-quarter revenue outlook $4.7B
Key quotes
"Earlier this year, we expanded the program to 200 locations, which delivered comp growth of 1.9% in the second quarter."
"Bloomingdale's delivered another impressive quarter, achieving positive 11.3% in comparable sales and the highest second quarter sales volume in its 154-year history."
"In the second quarter, we received $98 million of proceeds and $18 million following quarter end for a total of $116 million."
Analyst Q&A 11
Q3 sales outlook and AUR sustainability
Q (Blake Anderson · Jefferies): Analyst asked why second-half sales guidance held near prior view despite Q2 beat, and asked if Q3 comp step-down is from run rate, tougher compares, or prudence. He also asked if AUR gains are sustainable and how tariff refunds affect pricing.
A: Management said Q3 is the toughest comp of the year and there is nothing unusual unfolding; they see more opportunity to raise AUR but maybe not at the same recent rate. They plan to use part of the tariff refund to sharpen pricing in selective categories like furniture and fine jewelry.
"We look at the third quarter as being the strongest comp that we are up against for the year, 3.2%." — Antony Spring (CEO·CHAIR)
Reimagine stores performance
Q (Alex Straton · Morgan Stanley): Analyst asked whether older Reimagine store cohorts keep improving, and if comp uplift strengthens, holds, or moderates as cohorts mature.
A: Management said all reimagine cohorts are growing but they do not disclose cohort-level results. They noted improved NPS and plan to pilot additional stores in Q4 to prepare expansion in 2027.
"And since we do not break out the, individual year cohorts, again, offer any anything more specific than that." — Antony Spring (CEO·CHAIR)
Product changes driving banners
Q (Matthew Boss · JPMorgan): Analyst asked which initiatives drove Macy's and Bloomingdale's comp improvements and where remaining opportunities exist. He also asked gross margin drivers and what comp is needed to leverage SG&A.
A: Management said improvement starts with product — better assortments and storytelling — and they are in early innings of that change. They said AUR growth, better omnichannel, and inventory health support margin expansion, and low single-digit comp growth can lever SG&A.
"So we are in the early innings, 3rd inning, 4th inning." — Antony Spring (CEO·CHAIR)
Pacing Reimagine expansion
Q (Brooke Roach · Goldman Sachs): Analyst asked if expansion of Reimagine will accelerate across the fleet and whether additional investment is planned. She also asked details on how tariff dollars are being reinvested and baseline margin implications into 2027.
A: Management said they plan more reimagined stores next year and aim to reimagine the go-forward fleet, but will share timing on the fourth-quarter call. They said most tariff reinvestment funds support long-term brand building, pilots, and selective price support, not short-term sales boosts.
"The we said that at the beginning of the bold new chapter that there were 350 go forward stores." — Antony Spring (CEO·CHAIR)
AUR drivers and younger customers
Q (Oliver Chen · TD Cowen): Analyst asked what offset AUR gains, the long-term AUR outlook, targeting younger customers while keeping loyal base, and if merchandise margins/promotions should be flattish versus last year.
A: Management said rising AURs come from improved assortments and brand mix, including more leather, higher-price brands, watches, and fine jewelry. They highlighted strong seasonal occasions (prom, graduation) and new brand launches that help reach younger shoppers while serving multigenerational customers.
"AURs continue to grow because our product assortment continues to improve." — Antony Spring (CEO·CHAIR)
AUR vs gross margin and tariff reinvestment
Q (Michael Binetti · Evercore): Analyst asked if there is a point where AUR growth offsets gross margin headwinds and whether AURs bring ongoing higher costs. He also asked why back-half comps don't rise despite tariff reinvestments.
A: Management said AUR and gross margin are distinct; higher AURs don't automatically equal higher margins because it varies by category and brand. They said tariff refunds are mostly invested for long-term brand health and pilots, so much of the benefit is not expected to create a short-term comp lift.
"I would love to separate AUR from gross margin because I think it is a false narrative to kind of say higher AURs lead to higher margin." — Antony Spring (CEO·CHAIR)
AI uses and brand assortment changes
Q (Dana Telsey · Telsey Advisory Group): Analyst asked how AI will drive revenue and cut costs, and how the company is thinking about adding or removing brands and flow of newness.
A: Management said they view AI in three ways: driving revenue, improving colleague and customer experience, and creating efficiency to reduce costs, with pilots moving to broader rollouts. They said they are still adding and editing brands and cited new brand launches and partnerships as ongoing opportunities.
"Driving revenue, improving the experience for our colleagues and customers, and creating greater efficiency and reducing costs for our company." — Antony Spring (CEO·CHAIR)
Reimagine 200 drivers and category performance
Q (Paul Lejuez · Citi): Analyst asked whether Reimagine outperformance comes from traffic or ticket, and how apparel performed relative to other categories.
A: Management said apparel is strong across Macy's and Bloomingdale's and fall season typically brings higher AUR categories like coats and boots. They said Reimagined stores show steady traffic, higher AUR and basket size, and slightly lower conversion due to higher price points and more deliberation.
"On the businesses that are performing, we are seeing the apparel business strong at both Macy's and Bloomingdale's." — Antony Spring (CEO·CHAIR)
Tourism and World Cup impact
Q (Ryan Bulger · Gordon Haskett): Analyst asked if the World Cup or tourism trends affected sales in Q2 and how tourism contributes going forward.
A: Management said World Cup product performed well and they saw some boost from tourism, but overall tourism is still below pre-pandemic levels; they view tourism as a long-term opportunity that will gradually return.
"We had a great performance World Cup product." — Antony Spring (CEO·CHAIR)
Credit card trends and credit quality
Q (Robert Drbul · BTIG): Analyst asked for more detail on the credit card business, usage trends, and credit losses or bad debt.
A: Management said the credit card business grew in the quarter, with net credit losses in line with expectations and better than the industry. They said card usage is being built through programs tied to loyalty and they see the trends as sustainable.
"Our credit card continued to grow in the quarter." — Thomas J. Edwards Jr. (CFO)
Traffic, conversion, and customer retraining
Q (Simeon Siegel · Guggenheim Partners): Analyst asked for AUR differences by banner and whether the company can retrain customers to boost conversion as prices elevate, or if some customers will be walked away from.
A: Management declined to split out AUR by banner but said Bloomingdale's AUR is meaningfully higher and both brands are growing AUR. They said traffic is steady online and in stores, conversion is more challenging, and they are training colleagues and improving product pages and top-of-funnel marketing to help conversion while recognizing some purchases take multiple visits.
"Both physically and digitally, and conversion has been more of a of a challenge." — Antony Spring (CEO·CHAIR)