Macy's, Inc., an omni-channel retail organization, operates stores, websites, and mobile applications in the United States. The company sells a range of merchandise, such as apparel and accessories for men, women, and kids; cosmetics; home furnishings; and other consumer goods under the Macy's, Bloomingdale's, and bluemercury brands. It also operates in Dubai, the United Arab Emirates, and Al Zahra, Kuwait under the license agreements. The company was formerly known as Federated Department Stores, Inc. and changed its name to Macy's, Inc. in June 2007. The company was founded in 1830 and is based in New York, New York.

Macy’s valuation looks more restrained than cheap, because the market is already pricing in weak growth and low business profitability. On a multiples basis, the company looks noticeably cheaper than the industry: P/E, P/S, P/B, and P/FCF are materially below the median, which usually supports the case for undervaluation. However, this discount does not look fully justified, because earnings quality and operating efficiency remain below industry benchmarks. Net margin, operating margin, and ROA are below the median, and TTM EPS is very weak, which limits the potential for an aggressive upward re-rating. At the same time, ROE and ROI look acceptable, and ROI is even slightly better than the industry, which suggests the business is capable of generating returns on capital despite pressure on profitability. The balance sheet overall does not look problematic: debt/equity is below the median, the current ratio is slightly higher, and long-term debt is stable and not rising. But the quick ratio remains weak, so short-term liquidity is not ideal and calls for caution. Dividend yield in TTM is absent, whereas it was positive before, removing one of the important arguments for the stock for an income investor. Revenue and assets are large in absolute terms and relatively stable, but the trend does not show convincing acceleration, and EBITDA and operating profit look uneven across periods. Equity and net worth are strong, which supports financial stability, but this does not offset the weak conversion of sales into profit. Overall, the fundamentals justify a moderately cautious stance: the stock looks inexpensive on multiples, but earnings quality and margins do not provide grounds for a meaningful increase in the target price. For an investor, this is a story of limited upside combined with balance-sheet resilience and potential revaluation only if operating performance improves.

Macy's Inc

Сильный индекс, значительно упал. Быки в растерянности.

Strong index, significantly down. The bulls are confused.

Средний индекс, незначительно упал. Нейтральный рынок.

Medium index, slightly down. Neutral market.

Сильный индекс, без изменений. Нейтральный рынок.

Средний индекс, значительно упал. Отток средств из лонгов увеличился и находится на высоком уровне.

Medium index, significantly down. The outflow of funds from longs has increased and is at a high level.

Macy’s looks cheap on valuation multiples, but weak margins, EPS, and uneven profitability limit the potential for an upward revision of the target.

Key Points
Warren Buffett's successor as CEO of Berkshire Hathaway initiated a position this year.
The stock has a higher dividend yield than the S&P 500.
Trading at a steep value compared to the market, shareholders should also have upside potential.
Berkshire Hathaway doesn't pay a dividend. However, former CEO and legendary investor Warren Buffett purchased shares in companies that make payouts.
His successor, Greg Abel, has also purchased a dividend-paying stock this year that investors should examine closely. For those seeking dividends with upside potential, Macy's (NYSE: M) fits the bill.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
It's a new equity position for Berkshire this year. As of June 30, Berkshire owned 7.3 million shares valued at $173 million.
Berkshire has certainly shown it likes Macy's stock, but here's why the retailer deserves your consideration.
Supporting dividends
Macy's raised its quarterly dividend by 5% this year. That increased the payout from $0.1824 to $0.1915 per share. The board of directors has raised dividends annually since 2022. Macy's resumed payments in 2021 after taking the understandable step of suspending them in 2020 following the onset of the COVID-19 pandemic.
The sharp increase this year sends a positive signal about the company's confidence in its ability to maintain the higher rate. Still, it's important to check that it can sustain dividends.
A good measure you can use is the payout ratio, or the dividends as a percentage of earnings. Macy's has a comfortable 29% payout ratio, which should reassure investors.
The stock has an above-average dividend yield, too. Macy's shares yield 3.4% compared to 1.1% for the S&P 500. (SNPINDEX: ^GSPC)
Upside potential
Macy's share price gained 29.6% over the last year, through Sept. 8. That beat the S&P 500's 18.4% by 11.2 percentage points.
However, with Macy's in the midst of turning around its business, I think there's more upside potential. Management's "Bold New Chapter" strategy, launched a couple of years ago, included plans to improve the shopping experience, close unprofitable stores, expand its luxury Bloomingdale's and Bluemercury luxury brands, and improve the Macy's brand offerings.
You can see the improvement in the company's sales results. Same-store sales (comps) have been growing, including by 2.8% in the recently reported fiscal second quarter. All brands had positive comps, with Macy's, Bloomingdale's, and Bluemercury posting 1.1%, 11.3%, and 6.2%, respectively.
Importantly, the company's gross margin, excluding tariff refunds, expanded from 41.4% to 41.5%.
Despite these positive results, Macy's shares remain an attractive value opportunity. The stock has a price-to-earnings (P/E) ratio of about 9, a fraction of the S&P 500's P/E of 26.
Should you buy stock in Macy's right now?
Before you buy stock in Macy's, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Macy's wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $409,917!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,341,724!*
Now, it’s worth noting Stock Advisor’s total average return is 942% — a market-crushing outperformance compared to 211% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of September 12, 2026.
Lawrence Rothman, CFA has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Berkshire Hathaway. The Motley Fool has a disclosure policy.
Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

1 Top Warren Buffett Stock for Dividend Investors

Macy’s, Inc. M reported second-quarter fiscal 2026 results, with earnings and revenues surpassed the Zacks Consensus Estimate. Both metrics increased from the year-ago quarter.
The company’s Bold New Chapter strategy continued to gain traction, with positive comparable-sales growth across Macy’s, Bloomingdale’s and Bluemercury. Bloomingdale’s posted a second consecutive quarter of double-digit comparable-sales growth, while the Reimagine 200 Macy’s locations maintained their outperformance.
However, Macy’s shares fell 4.7% yesterday despite the quarterly earnings and revenue beat and the higher full-year outlook. The market reaction indicates that investors may have focused on the projected third-quarter loss, the expected sequential moderation in comparable sales and the company’s decision to reinvest most of the tariff-refund benefit to support longer-term growth.
Macy's, Inc. Price, Consensus and EPS Surprise
More on Macy’s Q2 Results
Adjusted earnings, excluding the net tariff-refund benefit, were 40 cents per share, topping the Zacks Consensus Estimate of 37 cents and increasing from 35 cents in the year-ago quarter. Macy’s reported GAAP earnings of 62 cents per share and adjusted earnings of 63 cents per share, with both figures including a 23-cent net benefit from tariff refunds after reinvestment.
Net sales of $4,866 million surpassed the Zacks Consensus Estimate of $4,820 million and increased 1.1% year over year. Excluding the impact of fiscal 2025 store closures, net sales grew 1.9%. Total revenues advanced 1.2% to $5,059 million from $4,999 million in the prior-year quarter.
Comparable sales rose 2.7% on an owned-plus-licensed-plus-marketplace basis, marking the company’s fifth consecutive quarter of comparable-sales growth. Go-forward business comps, including go-forward locations and digital across the three nameplates, increased 2.8%.
Other revenues increased 3.2% to $193 million. Credit card net revenues grew 2% to $156 million, aided by a healthy credit portfolio and stable net credit card losses. Macy’s Media Network revenues advanced 8.8% to $37 million, reflecting higher partner engagement on the advertising platform.
Update on M’s Brand Performance
Comparable sales at the Macy’s nameplate increased 1.1% year over year, representing the fifth consecutive quarterly gain. Reimagine 200 locations posted comparable-sales growth of 1.9%, with increases in nine of the past 10 quarters. These stores account for nearly 60% of the go-forward Macy’s fleet and about 75% of go-forward store sales.
At Macy’s, strength in watches, dresses, petites, career sportswear, kids, handbags, fragrances and men’s and women’s shoes was partly offset by softness in plus sizes, intimates and women’s sleepwear. Big-ticket trends improved sequentially but remained below the prior-year level. Digital comps were also positive, supported by improved assortments and marketplace growth.
Bloomingdale’s comparable sales jumped 11.3%, marking the brand’s second consecutive quarter of double-digit growth and its highest second-quarter sales volume in 154 years. Growth was broad-based across channels, markets and categories, with notable strength in ready-to-wear, men’s apparel, fine jewelry, fragrances and tabletop.
Bluemercury comps increased 6.2%, driven by its Summer Party marketing campaign and demand for dermatological skincare, makeup and fragrances. New and remodeled stores continued to perform well during the quarter.
Insight Into Macy’s Margins & Expenses
The gross margin rate expanded 180 basis points to 41.5%, which beat our estimate of 39.8%. The quarter included a 180-basis-point benefit from net tariff refunds, partly offset by a 10-basis-point headwind from ongoing tariff and fuel costs. Excluding both effects, the underlying gross margin rate improved about 10 basis points, reflecting favorable brand mix and benefits from the Reimagine expansion, partly offset by channel mix.
Selling, general and administrative (SG&A) expenses increased 0.8% to $1.96 billion. The rise reflected higher variable costs tied to sales growth and continued investments in Bold New Chapter initiatives, partly offset by cost-management efforts. As a percentage of total revenues, the SG&A rate improved 20 basis points to 38.7%. We estimated SG&A expenses to increase 1% year over year in the second quarter of fiscal 2026.
Adjusted EBITDA increased 22.5% to $457 million from $373 million in the prior-year period. The adjusted EBITDA margin expanded 150 basis points to 9% of total revenues.
M’s Financial Snapshot: Cash, Inventory & Equity Overview
Macy’s ended the quarter with cash and cash equivalents of $1.29 billion, up from $829 million a year ago, with total debt of $2.43 billion. The company had $2 billion of available borrowing capacity under its asset-based credit facility and no material long-term debt maturities until 2030.
Merchandise inventories increased 2.5% year over year, broadly in line with comparable-sales growth. Management said inventory was well-positioned for the fall season, with a balanced mix of newness and evergreen merchandise.
For the first half of fiscal 2026, operating cash flow was an inflow of $586 million compared with $255 million in the year-ago period. Free cash flow was $262 million versus an outflow of $88 million a year earlier. Capital expenditures totaled $324 million.
During the second quarter, Macy’s returned $101 million to shareholders through $51 million in dividends and $50 million in share repurchases. The company bought back 2.2 million shares during the quarter and had about $1 billion remaining under its $2-billion authorization.
Macy’s Q3’26 Outlook
For the third quarter of fiscal 2026, this Zacks Rank #2 (Buy) company expects net sales of $4.65-$4.70 billion. Fiscal 2025 store closures contributed approximately $30 million to sales in the comparable prior-year period. Comparable sales are projected to range from a 0.5% decline to a 0.5% growth on an owned-plus-licensed-plus-marketplace basis.
The adjusted EBITDA margin is expected to be between 3.7% and 4%. The adjusted loss per share is forecast between 19 cents and 23 cents. The outlook incorporates a portion of the planned second-half reinvestment of tariff refunds and a tougher comparable-sales comparison against 3.2% growth in the prior-year quarter.
Sneak-Peek Into Macy’s FY’26 Guidance
Following the second-quarter beat, Macy’s raised its fiscal 2026 outlook. The company expects net sales of $21.675-$21.825 billion, up from the previously stated $21.5-$21.75 billion. The guidance continues to reflect the impact of fiscal 2025 store closures, which contributed approximately $145 million to prior-year sales.
Comparable sales are projected to increase 1-1.5%, above the earlier forecast of 0.5-1.2% growth. Other revenues are still expected to be $920 million. The gross margin rate is anticipated to be between 38.5% and 38.7%, while SG&A expenses are expected to increase 1.5-2.25% on a dollar basis.
The adjusted EBITDA margin is forecast at 7.8-8%, up from 7.7-7.9%. Adjusted earnings are projected at $2.15-$2.35 per share compared with the prior range of $2-$2.20. The outlook does not incorporate the effect of potential future share repurchases.
Macy’s expects full-year capital expenditures of $800-$825 million. The company anticipates a combined tariff and fuel gross-margin headwind of 5-15 basis points, narrower than the previously expected 20-30 basis points. Of the $116 million in tariff refunds received, management expects roughly $20 million or about 5 cents per share, to flow to full-year earnings, with the balance supporting brand building, selective value investments and additional Reimagine pilots.
Macy's Stock Past Three-Month Performance
Shares of this company have lost 19.2% over the past three months compared with the industry’s 4.7% decline.
Other Stocks to Consider
We have highlighted three other top-ranked stocks in the retail space, namely Kohl’s Corporation KSS, Target Corporation TGT and Ross Stores Inc. ROST.
Kohl’s is a United States based department store retailer. The company offers moderately priced apparel, footwear and accessories for women, men and children, along with beauty and home products. It flaunts a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Kohl’s current fiscal-year earnings and sales indicates growth of 17.3% and decline of 0.8%, respectively, from the year-ago actuals. KSS delivered a trailing four-quarter average earnings surprise of 84.8%.
Target offers guests fashionable, differentiated merchandise and everyday essentials at discounted prices. It currently carries a Zacks Rank of 2.
The Zacks Consensus Estimate for Target's current fiscal-year earnings and sales suggests growth of 37.8% and 4.7%, respectively, from the year-ago actuals. TGT delivered a trailing four-quarter average earnings surprise of 10.5%.
Ross Stores operates as an off-price retailer of apparel and home accessories, primarily in the United States. The company also holds a Zacks Rank #2 at present.
The Zacks Consensus Estimate for Ross Stores’ current fiscal-year earnings and sales indicates growth of 32.7% and 12.4%, respectively, from the year-ago actuals. ROST delivered a trailing four-quarter average earnings surprise of 11.2%.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.9% per year. So be sure to give these hand picked 7 your immediate attention.
See them now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Macy's, Inc. (M) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).

Macy's Stock Down 5% Despite Q2 Earnings Beat, FY'26 View Raised

For Immediate Release
Chicago, IL – September 11, 2026 – Today, Zacks Investment Ideas feature highlights Macy’s M.
Should Income Investors Buy the Dip in Macy's Stock After Earnings?
Macy’s shares have slipped as much as 8% after the department-store giant reported Q2 results on Thursday morning, despite beating expectations and raising its full-year outlook.
The post-earnings pullback may be worth a closer look for income investors, particularly as Macy’s turnaround gains traction and its roughly 3.5% dividend yield appears increasingly well supported by improving cash generation and a healthier balance sheet.
Macy’s Q2 Results Strengthen the Turnaround Narrative
Macy’s delivered one of its better quarters in recent years, with net sales rising 1% year over year to $4.87 billion and edging estimates of $4.82 billion. Reported adjusted EPS reached $0.63, up from $0.35 a year ago, but management disclosed that the quarter included a $0.23-per-share net benefit from tariff refunds.
Excluding that benefit, Q2 adjusted EPS was $0.40, representing a much more modest 14% year-over-year increase and still topping expectations of $0.37 per share by 8%. Notably, Macy’s has now surpassed earnings expectations for seven consecutive quarters and has exceeded sales estimates for six straight quarters.
Furthermore, companywide comparable sales increased 2.7%, marking the fifth consecutive quarter of positive comps. Adjusted EBITDA also climbed to $457 million from $373 million, with the adjusted EBITDA margin improving to 9% from 7.5%.
Importantly, the results suggest Macy’s “Bold New Chapter” turnaround strategy is gaining traction rather than relying solely on cost cuts. Comparable sales at its Reimagine 200 Macy’s locations rose 1.9%, while Bloomingdale’s surged 11.3% to its highest second-quarter sales volume ever, and Bluemercury comps increased 6.2%.
Management subsequently raised its fiscal 2026 outlook, now calling for net sales of $21.68-$21.83 billion and adjusted EPS of $2.15-$2.35, compared with its previous EPS forecast of $2.00-$2.20.
Macy’s Dividend Looks Increasingly Sustainable
For income investors, Macy’s improving cash position may be just as important as its earnings recovery. The company generated $586 million of operating cash flow during the first half of the year, more than double the $255 million generated during the comparable period last year.
After $324 million of combined property, equipment, and capitalized software spending and $35 million of asset-sale proceeds, Macy’s produced roughly $297 million of cash flow after capital expenditures, comfortably covering the $101 million it paid in dividends.
Macy’s recently declared another quarterly dividend of $0.1915 per share, equating to about $0.77 annually. Furthermore, the annual payout represents only about 34% of the midpoint of Macy’s updated $2.15-$2.35 adjusted EPS guidance, leaving a reasonable cushion if retail conditions soften.
The balance sheet provides additional support. Macy’s finished Q2 with $1.3 billion in cash, up sharply from $829 million a year ago, against $2.4 billion of total debt. Perhaps more importantly, the company has no material long-term debt maturities until 2030, limiting near-term refinancing pressure.
Macy’s Appealing Valuation
Despite the turnaround progress, Macy’s valuation remains modest. At recent levels, Macy’s stock trades at around 9X forward earnings and less than 1X forward sales, with its price-to-free-cash-flow multiple also remaining low.
That valuation already leaves considerable skepticism baked into the shares and could provide an attractive entry point if Macy’s sustains positive comparable-sales growth and improved profitability.
Of course, Macy’s remains exposed to discretionary consumer spending, tariffs, and the structural challenges facing traditional department stores, meaning its dividend is not without risk. Still, improving sales trends, stronger cash generation, and ample liquidity make the payout look considerably better supported.
Bottom Line
The post-earnings dip in Macy’s stock may offer an appealing opportunity for income-oriented investors willing to tolerate the volatility of the retail sector. Reassuringly, Macy’s turnaround is producing tangible improvements across its brands, cash flow is comfortably covering the dividend, and its balance sheet provides additional financial flexibility.
At the moment, Macy’s stock currently sports a Zacks Rank #2 (Buy) and an overall “A” VGM Zacks Style Scores grade for the combination of Value, Growth, and Momentum.
Free: Instant Access to Zacks' Market-Crushing Strategies
Since 2000, our top stock-picking strategies have blown away the S&P's +7.7% average gain per year. Amazingly, they soared with average gains of +48.4%, +50.2% and +56.7% per year.
Today you can tap into those powerful strategies – and the high-potential stocks they uncover – free. No strings attached.
Get all the details here >>
Media Contact
Zacks Investment Research
800-767-3771 ext. 9339
https://www.zacks.com
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss. This material is being provided for informational purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. It should not be assumed that any investments in securities, companies, sectors or markets identified and described were or will be profitable. All information is current as of the date of herein and is subject to change without notice. Any views or opinions expressed may not reflect those of the firm as a whole. Zacks Investment Research does not engage in investment banking, market making or asset management activities of any securities. These returns are from hypothetical portfolios consisting of stocks with Zacks Rank = 1 that were rebalanced monthly with zero transaction costs. These are not the returns of actual portfolios of stocks. The S&P 500 is an unmanaged index. Visit https://www.zacks.com/performance for information about the performance numbers displayed in this press release.
7 Best Stocks for the Next 30 Days
Just released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."
Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.9% per year. So be sure to give these hand picked 7 your immediate attention.
See them now >>
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Macy's, Inc. (M) : Free Stock Analysis Report
This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Ideas feature highlights: Macy's

Skip to main content
Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.
© 2026, Nasdaq, Inc. All Rights Reserved.
My Quotes

Macy's (M) Q2 2026 Earnings Call Transcript

Macy’s M) shares have slipped as much as 8% after the department-store giant reported Q2 results on Thursday morning, despite beating expectations and raising its full-year outlook.
The post-earnings pullback may be worth a closer look for income investors, particularly as Macy’s turnaround gains traction and its roughly 3.5% dividend yield appears increasingly well supported by improving cash generation and a healthier balance sheet.
Macy’s Q2 Results Strengthen the Turnaround Narrative
Macy’s delivered one of its better quarters in recent years, with net sales rising 1% year over year to $4.87 billion and edging estimates of $4.82 billion. Reported adjusted EPS reached $0.63, up from $0.35 a year ago, but management disclosed that the quarter included a $0.23-per-share net benefit from tariff refunds.
Excluding that benefit, Q2 adjusted EPS was $0.40, representing a much more modest 14% year-over-year increase and still topping expectations of $0.37 per share by 8%. Notably, Macy’s has now surpassed earnings expectations for seven consecutive quarters and has exceeded sales estimates for six straight quarters.
Furthermore, companywide comparable sales increased 2.7%, marking the fifth consecutive quarter of positive comps. Adjusted EBITDA also climbed to $457 million from $373 million, with the adjusted EBITDA margin improving to 9% from 7.5%.
Importantly, the results suggest Macy’s “Bold New Chapter” turnaround strategy is gaining traction rather than relying solely on cost cuts. Comparable sales at its Reimagine 200 Macy’s locations rose 1.9%, while Bloomingdale’s surged 11.3% to its highest second-quarter sales volume ever, and Bluemercury comps increased 6.2%.
Management subsequently raised its fiscal 2026 outlook, now calling for net sales of $21.68-$21.83 billion and adjusted EPS of $2.15-$2.35, compared with its previous EPS forecast of $2.00-$2.20.
Macy’s Dividend Looks Increasingly Sustainable
For income investors, Macy’s improving cash position may be just as important as its earnings recovery. The company generated $586 million of operating cash flow during the first half of the year, more than double the $255 million generated during the comparable period last year.
After $324 million of combined property, equipment, and capitalized software spending and $35 million of asset-sale proceeds, Macy’s produced roughly $297 million of cash flow after capital expenditures, comfortably covering the $101 million it paid in dividends.
Macy’s recently declared another quarterly dividend of $0.1915 per share, equating to about $0.77 annually. Furthermore, the annual payout represents only about 34% of the midpoint of Macy’s updated $2.15-$2.35 adjusted EPS guidance, leaving a reasonable cushion if retail conditions soften.
The balance sheet provides additional support. Macy’s finished Q2 with $1.3 billion in cash, up sharply from $829 million a year ago, against $2.4 billion of total debt. Perhaps more importantly, the company has no material long-term debt maturities until 2030, limiting near-term refinancing pressure.
Image Source: Zacks Investment Research
Macy’s Appealing Valuation
Despite the turnaround progress, Macy’s valuation remains modest. At recent levels, Macy’s stock trades at around 9X forward earnings and less than 1X forward sales, with its price-to-free-cash-flow multiple also remaining low.
That valuation already leaves considerable skepticism baked into the shares and could provide an attractive entry point if Macy’s sustains positive comparable-sales growth and improved profitability.
Of course, Macy’s remains exposed to discretionary consumer spending, tariffs, and the structural challenges facing traditional department stores, meaning its dividend is not without risk. Still, improving sales trends, stronger cash generation, and ample liquidity make the payout look considerably better supported.
Image Source: Zacks Investment Research
Bottom Line
The post-earnings dip in Macy’s stock may offer an appealing opportunity for income-oriented investors willing to tolerate the volatility of the retail sector. Reassuringly, Macy’s turnaround is producing tangible improvements across its brands, cash flow is comfortably covering the dividend, and its balance sheet provides additional financial flexibility.
At the moment, Macy’s stock currently sports a Zacks Rank #2 (Buy) and an overall “A” VGM Zacks Style Scores grade for the combination of Value, Growth, and Momentum.
Research Chief Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Free: See Our Top Stock And 4 Runners Up
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Macy's, Inc. (M) : Free Stock Analysis Report

Should Income Investors Buy the Dip in Macy's (M) Stock After Q2 Earnings?

The following companies are expected to report earnings prior to market open on 09/10/2026. Visit our Earnings Calendar for a full list of expected earnings releases.
Macy's Inc (M)is reporting for the quarter ending July 31, 2026. The retail company's consensus earnings per share forecast from the 4 analysts that follow the stock is $0.37. This value represents a 9.76% decrease compared to the same quarter last year. In the past year M has beat the expectations every quarter. The highest one was in the 2nd calendar quarter where they beat the consensus by 550%. Zacks Investment Research reports that the 2027 Price to Earnings ratio for M is 10.11 vs. an industry ratio of 21.00.
MasterCraft Boat Holdings, Inc. (MCFT)is reporting for the quarter ending June 30, 2026. The leisure (recreational) company's consensus earnings per share forecast from the 2 analysts that follow the stock is $0.56. This value represents a 55.56% increase compared to the same quarter last year. In the past year MCFT has beat the expectations every quarter. The highest one was in the 1st calendar quarter where they beat the consensus by 25%. Zacks Investment Research reports that the 2026 Price to Earnings ratio for MCFT is 15.69 vs. an industry ratio of 31.90.
Shoe Station Group, Inc. (SHOE)is reporting for the quarter ending July 31, 2026. The shoes & retail apparel company's consensus earnings per share forecast from the 1 analyst that follows the stock is $0.32. This value represents a 54.29% decrease compared to the same quarter last year. In the past year SHOE has met analyst expectations twice and beat the expectations the other two quarters. The "days to cover" for this stock exceeds 13 days. Zacks Investment Research reports that the 2027 Price to Earnings ratio for SHOE is 8.92 vs. an industry ratio of 9.50.
The Lovesac Company (LOVE)is reporting for the quarter ending July 31, 2026. The home furnishings company's consensus earnings per share forecast from the 2 analysts that follow the stock is $-0.39. This value represents a 13.33% increase compared to the same quarter last year. LOVE missed the consensus earnings per share in the 4th calendar quarter of 2025 by -2.86%. The "days to cover" for this stock exceeds 12 days. Zacks Investment Research reports that the 2027 Price to Earnings ratio for LOVE is 32.14 vs. an industry ratio of 17.20, implying that they will have a higher earnings growth than their competitors in the same industry.
Designer Brands Inc. (DBI)is reporting for the quarter ending July 31, 2026. The retail (shoe) company's consensus earnings per share forecast from the 1 analyst that follows the stock is $0.25. This value represents a 26.47% decrease compared to the same quarter last year. In the past year DBI has beat the expectations every quarter. The highest one was in the 2nd calendar quarter where they beat the consensus by 250%. Zacks Investment Research reports that the 2027 Price to Earnings ratio for DBI is 13.68 vs. an industry ratio of 10.10, implying that they will have a higher earnings growth than their competitors in the same industry.
1-800-FLOWERS.COM, Inc. (FLWS)is reporting for the quarter ending June 30, 2026. The mail order retail company's consensus earnings per share forecast from the 2 analysts that follow the stock is $-0.79. This value represents a 14.49% decrease compared to the same quarter last year. The "days to cover" for this stock exceeds 48 days. Zacks Investment Research reports that the 2026 Price to Earnings ratio for FLWS is -3.07 vs. an industry ratio of 5.30.
Vince Holding Corp. (VNCE)is reporting for the quarter ending July 31, 2026. The textile company's consensus earnings per share forecast from the 2 analysts that follow the stock is $0.27. This value represents a 28.95% decrease compared to the same quarter last year. VNCE missed the consensus earnings per share in the 2nd calendar quarter of 2026 by -23.08%. Zacks Investment Research reports that the 2027 Price to Earnings ratio for VNCE is 11.03 vs. an industry ratio of 18.70.

Pre-Market Earnings Report for September 10, 2026 : M, MCFT, SHOE, LOVE, DBI, FLWS, VNCE

Looking at options trading activity among components of the Russell 3000 index, there is noteworthy activity today in WisdomTree Inc (Symbol: WT), where a total volume of 16,793 contracts has been traded thus far today, a contract volume which is representative of approximately 1.7 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 75.5% of WT's average daily trading volume over the past month, of 2.2 million shares. Particularly high volume was seen for the $25 strike call option expiring March 19, 2027, with 9,720 contracts trading so far today, representing approximately 972,000 underlying shares of WT. Below is a chart showing WT's trailing twelve month trading history, with the $25 strike highlighted in orange:
Macy's Inc (Symbol: M) options are showing a volume of 38,608 contracts thus far today. That number of contracts represents approximately 3.9 million underlying shares, working out to a sizeable 72.7% of M's average daily trading volume over the past month, of 5.3 million shares. Particularly high volume was seen for the $23 strike call option expiring January 15, 2027, with 11,262 contracts trading so far today, representing approximately 1.1 million underlying shares of M. Below is a chart showing M's trailing twelve month trading history, with the $23 strike highlighted in orange:
And Lemonade Inc (Symbol: LMND) saw options trading volume of 6,595 contracts, representing approximately 659,500 underlying shares or approximately 71.1% of LMND's average daily trading volume over the past month, of 928,175 shares. Particularly high volume was seen for the $52 strike call option expiring September 11, 2026, with 1,198 contracts trading so far today, representing approximately 119,800 underlying shares of LMND. Below is a chart showing LMND's trailing twelve month trading history, with the $52 strike highlighted in orange:
For the various different available expirations for WT options, M options, or LMND options, visit StockOptionsChannel.com.
Further WT Research:

Notable Wednesday Option Activity: WT, M, LMND

Key Points
Berkshire Hathaway had been amassing an ever-growing war chest since 2022.
But in the second quarter, the company bought more stock than it sold for the first time in 14 quarters.
Although this doesn’t guarantee more immediate deployment of the remaining cash balance, it does suggest Berkshire is more open-minded on the matter than it had been of late.
After nearly four years of steadily amassing a cash balance of $397 billion, Berkshire Hathaway (NYSE: BRKA) (NYSE: BRKB) is finally putting a measurable amount of that money back to work.
Oh, most of it still remains on the sidelines, undeployed. Specifically, as of the end of the conglomerate's second fiscal quarter, which ended in June, it still had nearly $366 billion in liquidity. That's a reduction of $31 billion in just three months' time, or less than one-tenth of its cash pile.
Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »
Still, it's a start.
So where did all that money go? It's not too tough to figure out.
Where the money went
The biggest chunk of that $31 billion went toward the purchase of more shares of technology giant Alphabet (NASDAQ: GOOG) (NASDAQ: GOOGL). Berkshire ended Q1 with 54.2 million "A" shares of the company (worth roughly $15.6 billion at the time), plus a handful of "C" shares. Now it owns a bunch more of both, with a collective stake worth nearly $36 billion. That makes Alphabet Berkshire Hathaway's third-biggest holding, right behind American Express.
That's certainly not the only addition Berkshire's current CEO Greg Abel -- with some guidance from Warren Buffett, of course -- made to the company's equity portfolio during the second quarter, though. Although it already owned stakes in both, the company scooped up another 17.5 million shares of Delta Air Lines (NYSE: DAL) to bring its count to 57.3 million, and more than doubled its position in department store chain Macy's (NYSE: M), adding another 4.3 million shares. Those trades would have cost on the order of $1.6 billion and $100 million, respectively.
Expanded positions in homebuilder Lennar (NYSE: LEN) (NYSE: LENB) and The New York Times Company (NYSE: NYT) would have also used up some of Berkshire's cash, although not nearly as much as the $17 billion it shelled out to expand its stake in Alphabet.
Perhaps Abel's most noteworthy use of Berkshire Hathaway's idle cash during Q2, however, wasn't a new pick or adding to an existing one. It's the $4.5 billion used to repurchase outstanding shares of Berkshire itself. That's a dramatic increase from the $235 million spent on the company's own stock in Q1, snapping a six-quarter hiatus in share buybacks.
It's also worth noting that Berkshire Hathaway sold on the order of $3.7 billion in equity holdings during the three months in question, bolstering the conglomerate's quarter-ending cash balance. The remainder of any difference between the sum total of these purchases minus the proceeds of these sales reflects capital spending or net costs incurred by Berkshire's privately owned businesses, such as GEICO Insurance, Clayton Homes, Pilot Travel Centers, and Dairy Queen, just to name a few.
Picky about picks, but also patient
The allocation of this cash deployment is interesting, to be sure. Perhaps more interesting, however, is the fact that Abel is finally doing something with all of that idle capital. Yet, Berkshire's CEO doesn't appear to be in a rush to put it all to work at once. This patience is just as impressive as the conglomerate's stock's long-term price performance.
Should you buy stock in Berkshire Hathaway right now?
Before you buy stock in Berkshire Hathaway, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Berkshire Hathaway wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $421,997!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,413,876!*
Now, it’s worth noting Stock Advisor’s total average return is 978% — a market-crushing outperformance compared to 213% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of September 6, 2026.
American Express is an advertising partner of Motley Fool Money. James Brumley has positions in Alphabet. The Motley Fool has positions in and recommends Alphabet, American Express, Berkshire Hathaway, Lennar, and The New York Times Co. The Motley Fool recommends Delta Air Lines. The Motley Fool has a disclosure policy.

Berkshire Hathaway's Cash Fell From $397 Billion to $366 Billion in a Single Quarter

Five Below, Inc. FIVE reported strong second-quarter fiscal 2026 results, with the top and bottom lines beating the Zacks Consensus Estimate and increasing year over year. Robust traffic, double-digit comparable sales growth and new store openings supported the performance, while margin expansion boosted profitability.
Following the better-than-expected second-quarter results and continued business momentum, management raised its fiscal 2026 sales and earnings outlook. As a result, shares of FIVE rose approximately 6.2% in after-hours trading on Sept. 2 following the announcement.
Five Below, Inc. Price, Consensus and EPS Surprise
More on Five Below’s Q2 Results
FIVE posted adjusted earnings per share of $1.68, surpassing the Zacks Consensus Estimate of $1.34. The bottom line surged 107.4% from 81 cents in the year-ago quarter.
Earnings were $3.99 per share compared with 77 cents a year earlier. The adjusted figure excludes tariff refunds and related interest, as well as retention-award expenses, net of tax. Tariff refunds and related interest contributed $2.33 per share to GAAP earnings.
Net sales increased 22.9% year over year to $1,261.5 million from $1,026.8 million. The top line exceeded the Zacks Consensus Estimate of $1,192 million.
Comparable sales (comps) rose 14.1%, marking the fifth consecutive quarter of double-digit growth. Management reported two-year stacked comp growth of 26.5%. The increase was primarily driven by higher transactions and robust traffic, with broad-based gains across customer groups, geographies and product categories.
Trend-focused assortments, licensed merchandise and summer and back-to-school collections supported customer engagement. Management highlighted social and digital marketing, along with improvements in the shopping experience, as drivers of customer acquisition and repeat visits.
Insight Into Margins & Costs of FIVE
Adjusted gross profit grew 30.8% year over year to $449.1 million from $343.3 million. The adjusted gross margin expanded approximately 220 basis points (bps) to 35.6%, which beat our estimate of 35.4%. Higher merchandise margins, fixed-cost leverage from strong comps and an improved shrink reserve rate supported the increase, partly offset by higher fuel costs.
Adjusted selling, general and administrative (SG&A) expenses, including depreciation and amortization, totaled approximately $336 million, or 26.6% of sales. The expense ratio improved approximately 140 bps year over year as fixed-cost leverage more than offset increased marketing investments and incremental labor costs associated with the timing of physical inventory counts.
Adjusted operating income increased 105.3% to $113.2 million from $55.1 million. The adjusted operating margin expanded approximately 360 bps to 9%, which surpassed our estimate of 7%. Adjusted net income more than doubled to $93.4 million from $44.8 million.
FIVE Provides Q2 Store Update
Five Below opened 52 net new stores during the quarter and ended the period with 2,022 stores across 46 states, representing 8.8% year-over-year store growth. Management highlighted strong new store productivity and continued opportunities to expand the chain.
The company entered Idaho, its 47th state, in August and plans to enter Puerto Rico in the second half of 2027. It expects approximately 40 net new stores in the fiscal third quarter and continues to target approximately 150 net new stores for fiscal 2026.
Five Below’s Financial Snapshot: Cash & Equity Overview
Five Below ended the quarter with cash and cash equivalents of $561.1 million and short-term investment securities of $626.8 million. Total shareholders’ equity was $2,476.1 million as of Aug. 1, 2026. Management noted that the approximately $1.2 billion cash and investment balance included about $170 million in pretax tariff refunds.
Inventory totaled $941.2 million, up 17.7% year over year. Average inventory dollars per store increased approximately 8%, while units per store were slightly lower. Capital expenditures totaled $110.4 million in the first six months of fiscal 2026.
The company repurchased approximately 311,000 shares for about $60 million during the quarter. On Aug. 29, the board authorized a new $600 million share repurchase program, replacing the remaining capacity under the prior authorization. The new program has no fixed expiration date.
What to Expect From FIVE in the Future?
For the third quarter of fiscal 2026, Five Below expects net sales of $1.21 billion to $1.23 billion, supported by comps growth of 8-10%. Net income is projected at $56 million to $63 million, with EPS of $1.01 to $1.13.
Management expects the third-quarter adjusted operating margin to reach approximately 6% at the midpoint, up 160 bps year over year. Adjusted gross margin is projected to expand about 100 bps, supported by fixed-cost leverage and higher merchandise margins, partly reflecting lower tariff costs. Higher outbound transportation fuel costs and an unfavorable shrink comparison are expected to partially offset these benefits.
For fiscal 2026, management raised its sales outlook to $5.63 billion to $5.71 billion from $5.40 billion to $5.48 billion. Comps are expected to increase 10-12% compared with the prior forecast of 6-8%. Adjusted operating margin is projected to expand approximately 250 bps year over year to 12.5% at the midpoint.
Adjusted net income is expected to range from $546 million to $572 million, up from $482 million to $504 million. Net income is expected to range from $672 million to $698 million, up from $480 million to $502 million. Adjusted EPS is projected at $9.83 to $10.31 compared with the previous range of $8.65 to $9.05.
Gross capital expenditures are expected to total $250 million to $260 million, up from $230 million to $250 million, reflecting investments in new stores, the shopping experience, infrastructure and technology. The outlook incorporates tariff rates currently in place and excludes future tariff refunds and share repurchases. Full-year adjusted earnings also exclude tariff refunds and related interest already recorded, as well as retention awards, net of tax.
FIVE Stock Past Three-Month Performance
Image Source: Zacks Investment Research
FIVE’s shares have gained 26.5% over the past three months as compared with the industry’s growth of 3.4%. FIVE currently carries a Zacks Rank #2 (Buy).
Other Stocks to Consider
We have highlighted three other top-ranked stocks, namely, Target Corporation TGT, Macy's, Inc. M and Ross Stores Inc. ROST.
Target Corporation offers guests fashionable, differentiated merchandise and everyday essentials at discounted prices. It currently sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Target’s current fiscal-year earnings and sales suggests growth of 37.7% and 4.7%, respectively, from the year-ago actuals. TGT delivered a trailing four-quarter average earnings surprise of 10.5%.
Macy's sells a wide range of merchandise, including men’s, women’s and children’s apparel and accessories, cosmetics, home furnishings and other consumer goods. The company carries a Zacks Rank #2 at present.
The Zacks Consensus Estimate for Macy's current fiscal-year earnings and sales suggests a decline of 4.3% and growth of 0.1%, respectively, from the year-ago actuals. Macy's delivered a trailing four-quarter average earnings surprise of 211%.
Ross Stores operates as an off-price retailer of apparel and home accessories. The company also holds a Zacks Rank #2 at present.
The Zacks Consensus Estimate for Ross Stores’ current fiscal-year earnings and sales indicates growth of 32.8% and 12%, respectively, from the year-ago actuals. ROST delivered a trailing four-quarter average earnings surprise of 11.2%.
Research Chief Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
This company targets millennial and Gen Z audiences, generating nearly $1 billion in revenue last quarter alone. A recent pullback makes now an ideal time to jump aboard. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.
Free: See Our Top Stock And 4 Runners Up
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
Macy's, Inc. (M) : Free Stock Analysis Report

Five Below Stock Up 6% After Q2 Earnings Beat, FY'26 Outlook Raised

The board of directors of Lowe's Companies has declared a quarterly cash dividend of one dollar and 25 cents per share, payable Nov. 4, 2026, to shareholders of record as of Oct. 21, 2026.
The Stewart Information Services Board of Directors has approved an increase in the Company's annual cash dividend from $2.10 to $2.20 per share, beginning with the third quarterly payment of 2026 of $0.55 per share, payable September 30, 2026, to common stockholders of record on September 15, 2026. "I am pleased to announce another dividend increase for our shareholders, making this our seventh dividend increase in just under six years," said Fred Eppinger, CEO. "This action reiterates our goal of delivering a consistent return on capital to shareholders both through our operational performance and our annual dividend."
RCI Hospitality Holdings announced it has declared a quarterly cash dividend of $0.08 per common share for the fiscal 2026 fourth quarter ending September 30, 2026. The 4Q26 dividend is payable September 30, 2026, to holders of record on September 15, 2026. This marks RCI's 43rd consecutive quarter of paying cash dividends. Over that time, the quarterly dividend has increased by 166.7% from $0.03 per share since it was initiated in the fiscal 2016 second quarter.
Zimmer Biomet Holdings, a global medical technology leader, announced that its Board of Directors has approved the payment of a quarterly cash dividend to stockholders for the third quarter of 2026. The cash dividend of $0.24 per share is payable on or about October 30, 2026 to stockholders of record as of the close of business on September 30, 2026.
The board of directors of Macy's, declared a regular quarterly dividend of 19.15 cents per share on Macy's, Inc.'s common stock, payable on October 1, 2026, to shareholders of record at the close of business on September 15, 2026.

Macy's Inc

Trend

Trend Class

Trend Power

Pattern

EMA

EMA-20

EMA-50

EMA-100

EMA-20

EMA-50

EMA-100

Oscillators

Stochastic

RSI

MACD

Candle pattern type