Macy's Earnings Beat Fades Amid Weak Q3 Outlook, Slumping Shares

Macy's reported better-than-expected second-quarter earnings, beating analyst estimates by 3 cents per share. The company's adjusted earnings per share (EPS) was 40 cents, excluding a 23-cent net tariff refund benefit. However, the retailer issued a weaker-than-expected third-quarter earnings outlook, projecting an adjusted loss of 19-23 cents per share.

The decline in Macy's shares came despite the company's sales rising 1.1% year-over-year to $4.866 billion, surpassing the estimated $4.826 billion. The Dow Jones index fell 0.60%, while the NASDAQ dipped 0.55%, and the S&P 500 dropped 0.54%. Oil prices surged 6% to $101.83, but precious metals like gold and silver declined.

The Q2 adjusted EPS beat was significantly influenced by non-recurring items, with the 23-cent net tariff refund benefit constituting a major portion of the reported 40-cent adjusted EPS. This raises concerns about Macy's core operational profitability for the remainder of fiscal 2026.