Key facts
- Macy's raised its annual financial forecasts.
- First-quarter sales rose 1.8% to $4.68 billion, ending 15 quarters of declines.
- Comparable sales at Bloomingdale's jumped 10.2%.
- Comparable sales at Bluemercury rose 6.4%.
- Comparable sales at Macy's namesake stores increased 1.6%.
Macy's has raised its annual financial forecasts and reported its first quarterly sales growth in nearly four years, driven by strong demand for high-end apparel and accessories, particularly at its Bloomingdale's stores. This performance highlights a K-shaped recovery in U.S. consumer spending, where higher-income shoppers continue to purchase luxury goods while lower-income households reduce spending due to economic uncertainty. The company's CEO, Tony Spring, is advancing a turnaround strategy focused on higher-end labels like Bloomingdale's and Bluemercury, expanding full-price sales, reinvesting in promising locations, and closing underperforming stores. Macy's now anticipates fiscal 2026 net sales to be between $21.50 billion and $21.75 billion, with an adjusted per-share profit estimated at $2 to $2.20. First-quarter sales increased by 1.8% to $4.68 billion, surpassing analysts' estimates and ending a 15-quarter streak of sales declines. Bloomingdale's saw a 10.2% jump in comparable sales, Bluemercury a 6.4% increase, and Macy's namesake stores a 1.6% rise. The company reported a Non-GAAP EPS of $0.13, exceeding estimates by $0.10, and revenue of $4.68 billion, surpassing expectations by $70 million. The company's forecast accounts for the strong first-quarter results, as well as a modest increase in sales for the rest of the year, while recognizing macroeconomic and ongoing geopolitical uncertainty. Macy's expects tariffs and higher fuel costs due to disruptions caused by the conflict in Iran to have a roughly 3% to 4% negative impact on annual profit.