Quick Facts
- Macy’s AI inventory replenishment tool is moving from pilot to full rollout, disclosed on its September 10, 2026 earnings call.
- Q2 2026 comparable sales rose 2.7%, the fifth consecutive quarter of growth, beating Wall Street’s 0.8% estimate.
- The company raised full-year 2026 net sales guidance to $21.67 billion to $21.82 billion and adjusted EPS guidance to $2.15 to $2.35.
Macy’s is expanding an artificial intelligence forecast overlay capability across its replenishment operations. The retailer disclosed the move during its September 10, 2026 earnings call, where COO and CFO Tom Edwards said the tool is transitioning from pilot to broader rollout.
The system targets demand planning, forecasting, and allocation. Edwards described the goal as having the right product in the right place at the right time, from assortment decisions through store-level replenishment.
Strong Financials Behind the Push
Macy’s reported Q2 2026 net sales of $4.9 billion, up 1.1% year over year. Comparable sales grew 2.7%, marking the fifth straight quarter of growth and far outpacing analyst expectations of 0.8%. Adjusted earnings came in at $0.63 per share against a Street estimate of $0.37.
Inventory rose 2.5% in the quarter, in line with sales growth. The company called its inventory position heading into fall a strong one.
Supply chain metrics improved as well. Units processed per hour increased 7.0% compared to Q2 2025. Average days between order placement and shipment fell 6.7% over the same period.
Infrastructure Supporting the Rollout
The AI deployment is tied to Macy’s broader transformation plan, called Bold New Chapter, launched in 2024. The strategy was projected to drive $235 million in savings by 2026 through supply chain overhauls, store closures, and automation investments.
A new $640 million facility in China Grove, N.C. anchors the infrastructure build. The 2.5 million square foot center is Macy’s largest distribution site and is designed to handle nearly 30% of the company’s digital supply chain volume. It is the first Macy’s facility to operate with an advanced warehouse management system and the third to deploy high-performance automation.
SVP of Supply Chain Operations Sean Barbour said the company is building on earlier lessons with its most advanced deployment yet, including the new warehouse management system designed to deliver greater accuracy, flexibility, and speed.
Broader AI Ambitions
Macy’s AI activity extends beyond inventory. Edwards told analysts the company sees opportunity to apply AI across supply chain, merchandising, marketing, call centers, and customer-facing operations. He cited more than 35 active AI use cases under development.
CEO Tony Spring framed the strategy plainly. “We are not buying shiny objects. We are solving problems,” he said on the call.
The company also plans to monetize $600 million to $750 million in assets, primarily from store and distribution center closures, as part of the broader restructuring.
What It Means for Operators
Macy’s results show measurable operational gains tied to AI-assisted replenishment, with faster fulfillment and better in-stock rates contributing to five consecutive quarters of comparable sales growth. For retailers still running manual or rules-based replenishment, the data from Macy’s builds a concrete case for automation investment.
Edwards said the company expects to realize further supply chain efficiencies in the second half of 2026, which will benefit gross margin. Full-year adjusted EPS guidance now sits at $2.15 to $2.35, up from an earlier range of $2.00 to $2.20.
