Macy’s Q1 2026 Earnings Beat

CNBC reported Wednesday that Macy’s delivered its best fiscal first-quarter comparable sales performance in four years. The results prompted the legacy department store chain to lift its full-year financial outlook.

Macy’s Q1 2026 Earnings Beat Expectations

Comparable sales climbed 3% across the business in the quarter ending May 2. The Macy’s nameplate alone posted 1.6% comparable growth. Revenue reached $4.68 billion, ahead of the $4.61 billion analysts surveyed by LSEG had anticipated. Adjusted earnings per share came in at 13 cents, well above the 3-cent consensus estimate. Net income nearly doubled year-over-year, rising to $63 million from $38 million in the same period last year.

Bloomingdale’s was a standout, posting comparable sales growth of 10.2%. CEO Tony Spring told CNBC that a distinctive “fun factor” and the recent bankruptcy filing of rival Saks Fifth Avenue both contributed. He was careful to note, however, that competitive disruption was not the primary driver of Bloomingdale’s momentum.

Guidance Raised Despite Macro Uncertainty

Macy’s now expects full-year net sales of between $21.5 billion and $21.75 billion. The prior forecast pointed to roughly $21.59 billion. Adjusted earnings per share guidance was raised to a range of $2 to $2.20, up from the previous $1.90 to $2.10 band. Full-year comparable sales are now projected to grow between 0.5% and 1.2%, compared with an earlier outlook that allowed for a potential decline. Spring told CNBC the decision to raise guidance reflected early second-quarter trends that have continued at a similar pace to those seen in Q1.

Background: A Three-Year Turnaround in Progress

Macy’s is roughly two years into a three-year strategic overhaul that Spring launched after taking the chief executive role. The plan centers on shuttering stores at underperforming locations and reinvesting in roughly 200 upgraded “reimagined” stores. Improvements have focused on basics: adequate staffing levels, curated product assortments, and store environments that encourage shoppers to linger. Spring has repeatedly framed the approach as disciplined rather than flashy.

Tax Refunds and Geopolitical Risks Color the Outlook

Higher-than-normal tax refunds boosted many retailers in the first quarter. Spring acknowledged the tailwind but said it was one factor among several. Looking ahead, some competitors have flagged risks from Middle East tensions pushing gas prices higher and from fading stimulus effects. Spring said Macy’s saw no material shift in customer behavior heading into the second quarter. Macy’s shares gained more than 2% in premarket trading following the release.

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