Macy’s Inc. M is strengthening its digital capabilities under the Bold New Chapter strategy, with technology playing a larger role in connecting stores, e-commerce and marketplace offerings. Digital remains central to its omnichannel model, while marketplace expansion broadens assortments and fills product gaps. The company is deploying artificial intelligence (AI) across its nameplates to improve product discovery, colleague support and customer engagement, making digital initiatives an increasingly important part of its broader transformation.
In second-quarter fiscal 2026, digital penetration represented 31% of net sales. Macy’s digital channel contributed to positive comparable sales growth, supported by improved brand assortments, fashion positioning, and continued marketplace expansion. Macy’s nameplate comparable sales increased 1.1%, while Reimagine 200 locations delivered 1.9% growth.
A key initiative is Ask Macy’s, its AI-powered conversational shopping assistant. Initially introduced on digital platforms to support discovery, the tool is now being expanded to in-store colleagues. This move could help Macy’s create a more consistent experience across customer touchpoints while giving associates faster access to product and shopping information.
The digital strategy is extending across the portfolio. Bloomingdale’s launched its own AI-powered conversational shopping assistant and delivered 11.3% comparable sales growth. Operationally, Macy’s reported a 7% increase in units processed per hour and a 6.7% improvement in order-to-ship days, supported by ongoing AI and automation initiatives.
Encouragingly, Macy’s raised its fiscal 2026 outlook following the quarter. The company expects net sales of $21.68-$21.83 billion, comparable sales growth of 1-1.5% and adjusted EPS of $2.15-$2.35. The improved guidance, alongside continued digital and operational investments, points to sustained execution of its transformation strategy through the remainder of the year.
Macy’s Price Performance, Valuation & Estimates
Shares of Macy’s have risen 30.9% over the past six months compared with the industry’s 25.6% growth.
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From a valuation standpoint, Macy’s is trading at a forward 12-month price-to-sales ratio of 0.28, down from the industry average of 0.51. M has a Value Score of A.
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The Zacks Consensus Estimate for Macy’s fiscal 2026 earnings implies year-over-year growth of 0.9%, while the same for fiscal 2027 indicates an uptick of 5.1%. Estimates for fiscal 2026 and 2027 have been revised upward by 4 cents and 5 cents, respectively, over the past seven days.
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Macy’s currently has a Zacks Rank #3 (Hold).
Key Picks
We have highlighted three better-ranked stocks, namely, Kohl’s Corporation KSS, Target Corporation TGT and Ross Stores Inc. ROST.
Kohl’s offers moderately priced apparel, footwear and accessories for women, men and children, along with beauty and home products. The company 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 suggests 24.7% growth from the year-ago actuals. KSS delivered a trailing four-quarter average earnings surprise of 84.8%.
Target Corporation offers guests fashionable, differentiated merchandise and everyday essentials at discounted prices. It currently carries a Zacks Rank of 2 (Buy).
The Zacks Consensus Estimate for Target’s current fiscal-year earnings and sales suggests growth of 37.8% and 5.1%, 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. The company carries 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%.
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Macy's, Inc. (M): Free Stock Analysis Report
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