Macy's Reports Best Q1 Growth in Four Years, Boosts Forecast Despite Consumer Concerns

• Comparable sales grew 3% overall and 1.6% at Macy's namesake stores, while Bloomingdale's posted 10.2% growth aided by brand strength and competitor disruption from Saks Fifth Avenue bankruptcy
• Full-year guidance raised to $21.5-$21.75 billion in net sales (vs. $21.59 billion expected), with comparable sales now forecast at 0.5%-1.2% growth versus prior range of -0.5% to +0.5%
• Revenue reached $4.68 billion (up 2% year-over-year) with net income of $63 million, as the company's three-year turnaround focused on 'retail fundamentals' rather than 'fancy stuff' shows continued progress

Macy's Q1 Performance Summary

Key Financial Results:

Macy's reported Q1 revenue of $4.68 billion versus $4.61 billion expected, up 2% year-over-year. Net income reached $63 million ($0.23 per share). Comparable sales grew 3% overall—the strongest first-quarter performance in four years—with Macy's namesake stores up 1.6% and Bloomingdale's surging 10.2%.

Raised Guidance:

The company increased its full-year fiscal 2026 outlook, now expecting net sales between $21.5-$21.75 billion (above consensus of $21.59 billion). Comparable sales guidance was raised to growth of 0.5-1.2%, versus a previous range of -0.5% to +0.5%.

Strategic Drivers:

CEO Tony Spring attributes success to a three-year turnaround strategy focusing on retail fundamentals: improved staffing, better product assortment, and enhanced store experiences. The company has upgraded 200 "reimagined" stores while closing underperforming locations at struggling malls. Bloomingdale's benefited from buzzy brands and competitive disruption, including rival Saks Fifth Avenue's bankruptcy.

Market Context:

Macy's outperformance contrasts with broader retail sector concerns about consumer spending amid reduced economic stimulus and geopolitical uncertainty. While Spring acknowledged tax refunds helped Q1 results, he emphasized the company's fundamental improvements were the primary growth driver. Importantly, positive trends have continued into Q2, supporting the raised guidance despite macroeconomic headwinds.

Investment Focus:

Management remains committed to "retail fundamentals" rather than flashy initiatives, emphasizing consistent execution in product selection and customer service as key to sustained performance.