Macy's raised its full-year adjusted earnings-per-share guidance to $2.15-$2.35 from $1.90-$2.10, citing continued momentum under its "A Bold New Chapter" transformation, and noted five straight quarters of net sales growth during a presentation at the Goldman Sachs Global Consumer and Retail Conference on Tuesday.
Chief Executive Officer Tony Spring and Chief Operating Officer Tom Edwards discussed the strategy's progress two and a half years into its rollout. The company also pointed to six consecutive quarters of beating Street guidance, including sales growth in both the first and second quarters of 2026.
Full-year revenue stood at $22.78 billion. The company's market capitalization is $5.9 billion, with a price-to-earnings ratio of 8.43 and a PEG ratio of 0.14.
Second-quarter results showed underlying gross margin rising approximately 10 basis points, while inventory increased 2.5%, in line with sales growth. Average unit retail across three brands rose 9% since the start of the strategy. Third quarter will present a tougher year-over-year comparison at 3.2%.
Bloomingdale's, which generates high-teens percentage of company revenue, posted double-digit growth in each of the last two quarters of 2025 and about 9% growth overall, marking four straight quarters of strong performance.
Spring described the economic backdrop as "choppy" with no straight-line path ahead.
"The A Bold New Chapter was intended to grow the company. We are growing the company. The A Bold New Chapter was intended to improve the quality of the customer experience. The customer experience is far better today," Spring said.
Edwards addressed the dynamics driving results, noting the pattern of higher average unit retail paired with slightly lower expected conversion rates, offset by a higher basket size—a trend he said has been evident for over a year.
Macy's Reimagine Store Program covers 200 locations, representing 60% of its store base and 75% of store business. Nine of the last ten quarters showed growth in those stores, with eight of nine showing growth across all cohorts. The retailer is targeting roughly 350 go-forward Macy's stores after closing about 85 over the first two years of the strategy.
Macy's serves more than 40 million customers, with visibility into over 70% of transactions through its loyalty program. Its Net Promoter Score at Macy's stores has risen 10 points since the start of the strategy.
Spring praised Bloomingdale's specifically: "I love Bloomingdale's. I grew up at Bloomingdale's, 35 years of my career at Bloomingdale's. It is a special brand. If we did not own Bloomingdale's, I would want to buy it. It is that good."
The company reiterated its outlook extending into 2027 as it continues executing its multi-pronged plan spanning merchandise, store modernization, and digital capabilities.
