Macy's Reported Profit Growth in Q2 2026
The retailer achieved higher quarterly profits and updated its full-year earnings forecast.
Updated on Sept. 30, 2026 in Retail
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Macy's reported a profit of $169 million for the second quarter of 2026, supported by a 1.1% increase in net sales to $4.87 billion. The company also raised its financial outlook for the full fiscal year.
Why it matters
The performance reflects Macy's strategic shift toward premium product assortments and wealthier demographics. This transition helped bolster average selling prices and same-store sales across its retail portfolio.
Quarterly profit reached $169 million compared to $87 million in the same quarter last year. The retailer also recorded $98 million in tariff refunds during the second quarter.
The players
Macy's
A major American department store chain that operates a diverse portfolio of retail brands including Bloomingdale's and Bluemercury.
Tony Spring
The Chief Executive Officer of Macy's who recently communicated the company's financial results and strategic outlook to analysts.
The details
Macy's successfully increased its average selling price by 9% by replacing synthetic materials with options like real leather and prioritizing high-end brands such as Ralph Lauren and Coach. Its 200 Reimagine stores, which now account for nearly 75% of total store sales, played a central role in driving the growth.
Timeline
Macy's generated $4.87 billion in net sales during Q2 2026.
CEO Tony Spring addressed analysts on September 24, 2026.
Market Landscape
This success follows the broader 2026 retail sector shift toward luxury-tier positioning, mirroring industry-wide attempts to capture higher-margin consumer spending. By pivoting its brand mix, Macy's is actively competing for the segment of the market that prioritizes premium labels.
Shoppers can expect a continued focus on premium brands like Ralph Lauren and Coach as the company evolves its in-store experience. These changes may limit the availability of lower-cost synthetic alternatives in favor of higher-end materials like real leather.
The takeaway
Macy's pivot toward high-end retail demonstrates that brands can improve profitability by aggressively retooling their product mix toward wealthier demographics. This approach emphasizes that physical store transformation and quality-focused inventory remain key drivers for legacy department stores.
Further reading
For more on shifting consumer trends, explore the Retail section.
Source note: This article includes information reported by NJ.
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Do you prefer when your local department stores prioritize premium luxury brands over budget options?
