Macy’s Posts Strongest Q1 Growth in Four Years, Raises Guidance

CNBC reported Wednesday that Macy’s posted its best first-quarter comparable sales performance in four years. The legacy department store’s Macy’s turnaround is gaining clear momentum heading into the back half of fiscal 2026.

Comparable Sales Beat Wall Street Forecasts

Comparable sales climbed 3% across the chain during the quarter ended May 2. The namesake Macy’s banner grew 1.6%, while Bloomingdale’s surged 10.2%. Revenue of $4.68 billion edged past analyst expectations of $4.61 billion, according to LSEG. Net income more than doubled year-over-year to $63 million, versus $38 million in the same period a year earlier.

CEO Tony Spring told CNBC that strong sales and better-than-expected profitability gave management the confidence to lift annual guidance. The company now expects full-year net sales between $21.5 billion and $21.75 billion. That compares with consensus expectations of $21.59 billion per LSEG. Full-year earnings per share guidance was raised to a range of $2.00 to $2.20, up from $1.90 to $2.10 previously.

Background: A Three-Year Rebuild in Progress

Macy’s is roughly two years into a three-year restructuring plan that Spring has led since taking the chief executive role. The strategy has centered on closing stores in struggling malls and channeling investment into roughly 200 upgraded locations. Those upgraded sites have prioritized retail basics, including adequate staffing, curated merchandise, and improved in-store experience. Spring told CNBC the focus has remained deliberately unglamorous. The retailer has avoided costly experimental initiatives in favor of operational discipline that drives repeat visits.

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Bloomingdale’s Benefits From Rival’s Collapse

Bloomingdale’s double-digit comparable sales gain was partly aided by the bankruptcy filing of Saks Fifth Avenue, which disrupted the wider luxury retail market. Spring acknowledged the competitive tailwind but was careful to frame it as secondary to internal progress. He said Bloomingdale’s distinct brand positioning and curated assortment were the primary growth drivers.

Spring also noted that higher-than-usual tax refunds contributed to strong first-quarter demand, a theme consistent with results across the broader retail sector. Critically, he said those positive trading patterns have carried into the early weeks of the second quarter, with no meaningful shift in how shoppers are approaching the brand’s three nameplates.

Despite flagging ongoing macroeconomic and geopolitical uncertainty, including the impact of Middle East tensions on fuel costs, Spring said the business trends justified a more optimistic annual outlook.

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