Macy’s Inc., seeing gains across all of its retail nameplates, with particular strength at Bloomingdale’s, posted a strong first quarter that motivated the company to raise its projections for the year.
On Wednesday, Macy’s Inc. reported that for the first quarter ended May 2, comparable sales increased 3 percent, exceeding the company’s guidance and led by go-forward comparable sales, which were up 3.1 percent. Go-forward sales exclude stores that are being closed. Total sales rose to $4.7 billion from $4.6 billion.
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Net income rose to $63 million from $38 million in the year-ago period. Adjusted net income rose to $35 million from $31 million. Adjusted earnings per share rose to $0.13 from $0.11. Adjusted earnings before interest, taxes, depreciation and amortization slipped to $290 million from $304 million.
By division, Macy’s comparable sales rose 1.6 percent, inclusive of the 200 “reimagined” Macy’s stores where comparable sales grew 2.4 percent. Macy’s reimagined stores are those receiving significant investments for increased staffing in high-traffic areas such as women’s shoes and fitting room areas, fresher products and improved visuals.
Bloomingdale’s comparable sales grew 10.2 percent, marking seven consecutive quarters of gains at the upscale department store. The upscale department store has been adding luxury and premium brands, elevating service and capturing more market share.
Bluemercury’s comparable sales increased 6.4 percent.
Due to the momentum seen so far this year, Macy’s raised its outlook for overall 2026 sales to between $21.5 billion to $21.75 billion, from the previous forecast for $21.4 billion to $21.65 billion in sales. Comparable sales are now seen in the range of up 0.5 percent to 1.2 percent, compared to the previous forecast of from negative 0.5 percent to plus 0.5 percent.
Adjusted diluted earnings per share are now seen ranging from $2 to $2.20, compared to the previous forecast of from $1.90 to $2.10.
“We’re off to a strong start to the year, exceeding expectations for the fifth consecutive quarter as our Bold New Chapter strategy continues to build momentum,” Tony Spring, Macy’s Inc. chairman and chief executive officer, said in a statement Wednesday morning. “Customers are responding — driving comparable sales growth at Macy’s and another standout quarter at Bloomingdale’s, underscoring its leadership in modern luxury. We’re operating with discipline and focusing on what matters most: our customers. With the power of our multibrand, multicategory, multigenerational portfolio, we’re confident in our path to sustainable, profitable growth. And we’re excited to continue our year of celebrations at Macy’s, including the 50th anniversary of Macy’s Fourth of July Fireworks, as we mark the nation’s 250th.”
In other statistics, merchandise inventories increased 3.6 percent year-over-year. “The company believes the composition and level of inventories are well-positioned heading into summer 2026,” Macy’s indicated.
Gross margin rate of 38.9 percent declined 30 basis points. Excluding a tariff impact of 30 basis points, gross margin was even with last year.
Selling, general and administrative expense of $2 billion increased $39 million, reflecting the company’s ongoing investments in the go-forward business, including the reimagined 200 locations, Bloomingdale’s
and digital across nameplates, partially offset by the net benefit from continued cost management efforts. As a percent of total revenue, SG&A expense was 39.9 percent, unchanged from the prior year period.
The company ended the first quarter of 2026 with cash and cash equivalents of $1.3 billion and had $2 billion of available borrowing capacity under its asset-based credit facility. As of the end of the first quarter of 2026, total debt was $2.4 billion. Macy’s said it had no material long-term debt maturities until 2030.