Macy’s CEO Tony Spring Says Firm Plans To Reinvest $96M Of Tariff Refund Into The Business: Report

• Macy’s plans to use the tariff refund for furniture and jewelry price cuts, along with marketing, staffing and higher fuel costs.
• The company raised its FY26 guidance for sales, comparable sales, adjusted EPS, and EBITDA margin following its Q2 performance.
• Macy’s reported second-quarter net sales of $4.9 billion, up 1.1% year-over-year, while adjusted diluted earnings per share came in at $0.63.

Macy’s Inc. (M) CEO Tony Spring reportedly said on Thursday that the department-store retailer plans to reinvest $96 million of its tariff refund into the business, with some of the funds going toward price cuts on furniture and jewelry.

Tariffs Hit Furniture Demand

Spring told The Wall Street Journal that Macy’s furniture business was affected by tariffs more than the company had expected. He said an item that previously sold for $2,900 rose to $3,400, which did not resonate with consumers. Macy’s subsequently lowered prices in the second quarter and saw a significant improvement in the category’s performance, Spring said.

Macy’s is also cutting jewelry prices. The category has incurred higher costs due to tariffs and rising gold prices, according to The WSJ report.

Part of the $96 million will also go toward marketing and additional staffing at some stores, while the remaining funds will be used to offset higher fuel costs, Spring said.

Macy’s Raises FY2026 Outlook

The comments come after Macy’s reported second-quarter net sales of $4.9 billion, up 1.1% year-over-year, while adjusted diluted earnings per share (EPS) came in at $0.63. This compares with analyst estimates of EPS of $0.37 and net sales of $4.81 billion, according to data compiled by Fiscal AI.

Macy’s also raised its FY26 outlook, lifting its net sales forecast to $21.675 billion to $21.825 billion, from $21.5 billion to $21.75 billion previously. Comparable sales are now expected to increase by 1.0% to 1.5%, up from the earlier forecast of 0.5% to 1.2%. 

The company also raised its adjusted EPS guidance to $2.15 to $2.35, from $2.00 to $2.20, while adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) margin guidance increased to 7.8% to 8.0%, from 7.7% to 7.9%.

M shares were down around 4% on Thursday. 

Macy’s Stock: What Are Retail Investors Saying?

Retail sentiment for Macy’s on Stocktwits turned ‘extremely bullish’ from ‘bullish,’ while message volume remained ‘high.’

M shares have declined over 11% this year.

Read also:ADBE Stock Hits 1-Month Low Ahead Of Earnings – Analysts Look For Clarity On Freemium Strategy

For updates and corrections, email newsroom[at]stocktwits[dot]com.