Macy's Q1 Earnings Lift Outlook

Macy's, Inc. (M) reported its first year-over-year net sales growth in nearly four years in the fiscal first quarter of 2026, prompting the company to raise its full-year outlook on June 3, 2026. Management attributed the improvement to progress in its "A Bold New Chapter" turnaround and strong performance at Bloomingdale's.

Quarter Results and Guidance

Macy's said net sales for the quarter ended May 2, 2026, reached approximately $4.68 billion, up from about $4.60 billion a year earlier. GAAP net income was $63 million, or $0.23 per diluted share. Adjusted earnings per share (EPS) came to $0.13, roughly $0.10 above the FactSet consensus. Consolidated comparable sales, a metric tracking sales at established stores and digital channels, rose 3.0%, marking the strongest first-quarter comparable-sales growth in four years and the fourth consecutive quarter of gains. This followed a 1.8% increase in the prior quarter.

The company’s cash-flow statement showed a decrease in accounts payable and accrued liabilities alongside an increase in other current liabilities.

Macy's raised its full-year 2026 guidance, increasing the net sales range to $21.5 billion–$21.75 billion from $21.4 billion–$21.65 billion. It also lifted its EPS outlook to $2.00–$2.20 from $1.90–$2.10 and now expects comparable sales to rise 0.5%–1.2% for the year. At the time, FactSet consensus stood at $2.09 per share on $21.6 billion in revenue.

Turnaround Progress and Luxury Momentum

Management said the "A Bold New Chapter" turnaround is gaining traction across Macy's, Bloomingdale's, and Bluemercury, driven by merchandise refreshes, improved service, and a focus on affluent customers. These changes have shifted the sales mix toward luxury and premium assortments.

Comparable sales at Macy's banner stores increased 1.6% in the quarter. Bloomingdale's posted a 10.2% gain, its highest first-quarter sales volume on record, while Bluemercury rose 6.4%. Strong results at Bloomingdale's and Bluemercury offset more modest growth at Macy's banner stores.

The company raised its full-year outlook despite uneven broader consumer spending, citing resilience among higher-income shoppers and strong demand for high-end apparel, accessories, and beauty products. Management linked the improved guidance to the banner mix and execution of its turnaround strategy.