Adding higher-priced products and catering to middle- and high-income consumers helped drive sales growth across the Macy’s, Inc. brands in the second quarter, executives said Thursday (Sept. 10) during an earnings call.
Macy’s, Inc. saw growth across all its brands, including Macy’s, Bloomingdale’s and Bluemercury, as it earned year-over-year increases of 1.1% in net sales, which reached $4.9 billion, and 2.7% in comparable sales, according to a Thursday press release.
“Across nameplates, we continue to skew toward middle- and upper-income consumers, where performance remains stronger,” Macy’s, Inc. Chairman and CEO Tony Spring said during the call.
Asked by an analyst if the company can continue to increase its average unit retail (AUR), Spring said he believes the company has an opportunity to do so.
“It may not be at the rate that it has been for the last 12 months, but we can premiumize, whatever the right word is, our assortments across all three brands,” Spring said. “The customer continues to respond most favorably to newness, to trends, to the expansion of brands, to additional points of distribution.”
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Macy’s, Inc. increased its AUR by 9% during the second quarter, Macy’s, Inc. Chief Operating Officer and Chief Financial Officer Tom Edwards said during the call. Edwards attributed the rise to the company’s addition of more relevant brands, a refined assortment and a better omnichannel experience.
“AUR is really part of our broader model of building a healthier business,” Edwards said.
Looking ahead, Macy’s, Inc. raised its full-year 2026 guidance for net sales to $21.675 billion to $21.825 billion, up from the previous $21.5 billion to $21.75 billion, and for comparable sales to 1% to 1.5%, up from 0.5% to 1.2%, according to an earnings presentation released Thursday.
“Today we are raising our full-year outlook, reflecting our better results and confidence in the A Bold New Chapter strategy, as well as a pass-through of a portion of our tariff refunds,” Spring said during the call.
Macy’s, Inc. received $98 million of tariff refunds in the second quarter and $18 million following the end of the quarter, for a total of $116 million, and has now received all the refunds it expects, Edwards said during the call.
“We are taking a balanced approach to deploying the proceeds to both the bottom line and for reinvestment,” Edwards said.
The company will devote about $20 million to the bottom line, with the remainder of the tariff refunds going to brand building, store pilots and mitigation of the uncertainty around fuel headwinds, he said.
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