Macy's, Inc. reported its second fiscal-quarter of 2026 on September 10, and the print marks the clearest evidence yet that the multi-year Bold New Chapter overhaul is producing durable operating gains rather than one-off accounting windfalls. Comparable sales rose for the fifth straight quarter, led by Bloomingdale's, which posted double-digit growth to its highest second-quarter sales volume in the brand's history. The luxury nameplate is no longer a hopeful story; it is now the engine driving the entire portfolio, and the forward earnings multiple in the low 9s suggests the market is pricing a recovery that may be closer to complete than the price implies.
The headline gross margin print needs a haircut, because roughly the full increase came from International Emergency Economic Powers Act, or IEEPA, tariff refunds, a non-recurring benefit from the reversal of emergency trade duties. Excluding the refund and a modest tariff and fuel cost headwind, underlying gross margin improved by a single digit number of basis points. The durable story lives in SG&A leverage, in comparable sales breadth across all three nameplates, and in the Reimagine 200 store cohort, which now represents about 75% of Macy's go-forward sales and keeps outpacing the rest of the fleet.
The strongest evidence supporting the turnaround is the consistency. Five consecutive quarters of positive comparable sales, a 150 basis point year-over-year expansion in adjusted EBITDA margin, and a raised full-year outlook all point the same direction. The most important counterargument is that a large slice of current-period adjusted EPS came from tariff refunds, and management is consciously reinvesting most of the refund into the business rather than the bottom line, which tempers the earnings trajectory heading into the second half.
The forward debate centers on whether holiday comparable sales hold in the upper part of the guidance range, whether Bloomingdale's growth normalizes at a still-elevated pace, and whether SG&A leverage continues to outpace revenue growth as the company funds the Reimagine expansion. The market cap near $5.8 billion describes a modest valuation for a company that is demonstrably growing again. The 3.5% dividend yield, with no material debt maturities until 2030, keeps the downside contained.