Macy’s raised its annual forecasts and posted its first quarterly sales growth in nearly four years on Wednesday, driven by strong demand for high-end apparel and accessories, particularly at its Bloomingdale’s stores.
Shares of the company, which also beat quarterly sales and profit estimates, were up about 3 per cent in premarket trading.
Macy’s results add to recent retail earnings that underscored the K-shaped recovery in U.S. consumer spending, with higher-income shoppers continuing to splurge on discretionary and luxury goods while lower-income households pull back amid rising economic uncertainty.
“Customers are responding – driving comparable sales growth at Macy’s and another standout quarter at Bloomingdale’s,” CEO Tony Spring said.
Under Spring, Macy’s has pushed ahead with its “Bold New Chapter” turnaround launched in 2024, focusing on higher-end labels, growing full-price sales, reinvesting in stronger locations and closing weaker stores.
“The company’s investments are having a positive impact. The luxury part of Macy’s business continues to perform well,” Morningstar analyst David Swartz said.
At Bloomingdale’s, comparable sales jumped 10.2 per cent in the first quarter ended May 2, while they rose 6.4 per cent at Bluemercury. Meanwhile, comparable sales at Macy’s namesake stores ticked up 1.6 per cent.
This helped quarterly sales rise 1.8 per cent to $4.68 billion, ending 15 straight quarters of declines and beating analysts’ average estimate of $4.61 billion.
On an adjusted basis, Macy’s posted earnings per share of 13 cents, beating estimates of 3 cents, according to data compiled by LSEG.
Analysts also said Macy’s is benefiting from challenges at Saks Global, which is seeking to exit bankruptcy.
Macy’s now expects fiscal 2026 net sales of $21.50 billion to $21.75 billion, compared with its prior forecast of $21.40 billion to $21.65 billion.
It estimated annual adjusted per-share profit of $2.00 to $2.20, compared with its earlier forecast of $1.90 to $2.10.
Macy’s said it had taken a “prudent” approach to its forecast and continues to expect a relatively smaller impact from U.S. import tariffs in the second half of the year.
The company, which relies on manufacturing in China, said the forecast does not include the benefits from potential tariff refunds.
(Reporting by Neil J Kanatt in Bengaluru; Editing by Sriraj Kalluvila)
