Retailers lift guidance and reshape operations

American Eagle (AEO) reported second‑quarter revenue of about $1.38 billion for the quarter ended August 1, 2026, with adjusted earnings per share of $0.79, both ahead of market expectations. Total comparable sales rose about 6%, reflecting contrasting trends between its two main brands.

Comparable sales at the Aerie brand increased by roughly 19%, while comparable sales for the American Eagle (AEO) brand declined about 1%. The quarter included a $161 million net benefit from tariff refunds, which materially boosted margins and supported profitability.

Gross margin expanded to 48.7%, an increase of about 980 basis points year over year. Operating income reached $211 million, implying an operating margin of about 15.3%, underscoring the impact of the tariff refunds alongside brand performance.

Management guided third‑quarter operating income to a range of $110 million to $115 million and updated full‑year operating income guidance to a range of $540 million to $550 million. These figures are presented inclusive of the tariff refund benefit as reported.

Macy’s (M) reported second‑quarter 2026 net sales of about $4.9 billion. Comparable sales grew approximately 2.7%, with so‑called go‑forward comparable sales, which exclude certain business exits, rising around 2.8%.

Performance was led by Bloomingdale’s, where comparable sales increased about 11.3%, and by Bluemercury, which posted comparable sales growth of roughly 6.2%. These luxury and beauty formats outpaced the broader business and were key drivers of overall gains.

On the back of this performance, Macy’s (M) raised its full‑year 2026 guidance for net sales, comparable sales and adjusted earnings per share. The updated outlook signals management’s expectation of continued momentum in the remainder of the year.

Boohoo, through Debenhams Group, agreed to sell the automation assets in its Sheffield distribution centre and to reassign the site lease to Primark for £90.0 million. Of this total, £76.5 million will be received on completion, with the remaining £13.5 million payable on vacant possession of the site.

The company stated that proceeds from the transaction will be used to reduce net debt. Boohoo also plans to contract with a logistics provider to take over fulfilment, effectively shifting the operational model for the activities previously handled at the Sheffield facility.

Currys reported that group sales rose about 7% in the first 17 weeks of its new financial year. In the UK and Ireland, like‑for‑like sales increased roughly 6% over the same period, while the Nordics delivered around 9% growth.

The company cited stronger summer demand for categories such as large televisions, fans and air‑conditioning, with events like the World Cup and heatwaves supporting sales. Currys said it remains on track to meet its stated full‑year underlying pre‑tax profit expectation of about £199 million.