Observed Signal · Mar 20, 2026 · Earnings Report · Source: Digiday · Impact: 4/5 · Sentiment: Neutral
Macy’s Leans on AI Despite Cautious 2026 Outlook
Macy’s, Inc. reported fourth-quarter and full-year 2025 results with net sales of $21.8 billion and 1.5% comparable‑sales growth. For fiscal 2026 it guided to $21.4 billion–$21.65 billion in annual sales, signaling a flat-to-modest decline versus 2025, and reiterated plans to close 65 additional Macy’s nameplate stores as part of a previously announced 150-store reduction. Company executives said they plan to expand use of artificial intelligence across supply chain, merchandising, marketing, call centers and customer-facing/omnichannel operations. Bloomingdale’s and Bluemercury posted stronger growth (Bloomingdale’s +7.4% comparable sales in 2025; Bluemercury +1.6% comparable annual sales). Macy’s will invest in events for 2026 (including the 100th Macy’s Thanksgiving Day Parade) and expand its “Reimagine” store updates to a 200-store fleet.
Public earnings/guidance from a major national retailer that signals cautious consumer demand and announces broader AI adoption across merchandising, marketing and omnichannel operations — relevant to retail media, MarTech adoption and advertiser/agency planning.
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Key Takeaways & Evidence Grounding
- Macy’s, Inc. reported net sales of $21.8 billion for 2025 and 1.5% comparable sales growth.
- Fiscal 2026 sales guidance: $21.4 billion to $21.65 billion (a 0.5% decline to 0.5% increase versus 2025).
- Macy’s will close 65 additional Macy’s nameplate stores (part of a previously announced 150 total closures).
- Company plans to leverage artificial intelligence across supply chain, merchandising, marketing, call centers and omnichannel/customer‑facing functions.
- Bloomingdale’s posted 7.4% comparable sales growth in 2025; Bluemercury posted 1.6% comparable annual sales growth.
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Macy's Raises Annual Guidance After Strong Q2
Macy's reported better-than-expected second-quarter results for 2026, raising its full-year guidance. The company saw a 1.1% increase in total sales to $4.9 billion, with comparable sales up 2.7%. All nameplates showed growth, with Bloomingdale's leading at 11.3%, Bluemercury at 6.2%, and Macy's brand at 1.1%. The 'Reimagine 200' stores within the Macy's brand outperformed, with comparable sales up 1.9%. Net income rose to $169 million from $87 million, with adjusted EPS of $0.63, including a $0.23 tariff refund effect. The company plans to reinvest most tariff refunds into the business and remains cautious about the second half due to macroeconomic and geopolitical uncertainties.
Macy's Rolls Out AI Inventory Replenishment Tool
Macy's Inc. is expanding an artificial intelligence forecast overlay to its inventory replenishment operations, moving from pilot to broader implementation, according to its September 10 earnings call. The initiative aims to improve in-stock levels and drive inventory efficiencies by ensuring the right product is in the right place at the right time. COO and CFO Tom Edwards highlighted that supply chain efficiencies are expected in the second half of 2026, benefiting gross margin. This rollout is part of Macy's 'Bold New Chapter' transformation plan launched in 2024, expected to generate $235 million in savings by 2026. The company enters the fall season in a good inventory position, with inventory up 2.5% in Q2, aligned with sales growth. Other retailers like Target, Lowe's, and Kohl's are also optimizing inventory management with AI and other technologies.
Macy's Invests Tariff Refunds in Turnaround
Macy's Inc. reported strong Q2 2026 results, with net sales up 1.1% to $4.9 billion and comparable sales up 2.7%. The company received $116 million in tariff refunds and plans to invest most of it in its turnaround, including store renovations and brand-building, rather than price cuts. Comparable sales grew at all nameplates: Macy's up 1.1%, Bloomingdale's up over 11%, and Bluemercury up over 6%. Gross margin expanded 180 basis points to 41.5%, including tariff refunds. Net income nearly doubled to $169 million. CEO Tony Spring highlighted six straight quarters of better-than-expected results. Analysts praised the strategy of reinvesting refunds, contrasting with a 'race to the bottom' on price competition.
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