Macy’s Q1 Comparable Sales Rise 3%, Strongest in Four Years; Lifts Full-Year Outlook
Macy’s on Wednesday reported its strongest fiscal first-quarter comparable sales performance in four years, as the legacy department store chain’s turnaround strategy gains traction. The company also raised its full-year guidance, citing better-than-expected sales and profitability.
Comparable Sales and Banner Performance
Overall comparable sales rose 3% during the quarter, driven by Macy’s 200 so-called reimagined stores. At the flagship Macy’s banner, comparable sales grew 1.6%. Bloomingdale’s posted a 10.2% comparable sales increase, supported by a range of popular brands, a distinctive “fun factor” in the luxury segment, and the recent bankruptcy of rival Saks Fifth Avenue, CEO Tony Spring told CNBC in an interview. “Is the disruption in the marketplace helpful to us? Sure,” Spring said. “Is it the primary reason we’re growing? No.”
Guidance Revision and Financial Outlook
Macy’s now expects full-year 2026 net sales between $21.5 billion and $21.75 billion, largely ahead of the $21.59 billion consensus estimate from LSEG. Adjusted earnings per share are forecast between $2 and $2.20, up from a prior range of $1.90 to $2.10 and well above the $2.07 midpoint and high-end expectations, according to LSEG. The company projects comparable sales growth of 0.5% to 1.2% for the year, compared with its earlier outlook of a 0.5% decline to a 0.5% increase.
Spring noted that tax refunds “definitely” contributed to first-quarter performance but were not the sole driver. Crucially, the same trends have continued into the second quarter, he said. “We did raise our guidance in both sales and profit for the remainder of the year to reflect the business trends that we’re seeing as we start the second quarter, so pleased with the second quarter to date and the breadth of the categories that are performing,” Spring said. He added that the company sees “no significant change in the consumer approach to our categories and our business across all three of our name plates,” leading Macy’s to hike its outlook “despite the macroeconomic and geopolitical uncertainty.”
First-Quarter Results vs. Wall Street Estimates
Here is how Macy’s performed in its fiscal first quarter compared with analyst expectations compiled by LSEG:
- Earnings per share: 13 cents adjusted vs. 3 cents expected
- Revenue: $4.68 billion vs. $4.61 billion expected
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