The company has recorded comparable sales growth of 3 per cent in the first quarter (Q1) of 2026, surpassing company guidance, while go-forward business comparable sales rose 3.1 per cent. Net sales increased 1.8 per cent year-on-year (YoY) to $4.7 billion, despite the impact of store closures.
Macy’s, Inc has posted its strongest first-quarter performance in four years, with comparable sales rising 3 per cent and net sales increasing 1.8 per cent YoY to $4.7 billion.
Bloomingdale led growth, while Reimagine 200 stores continued gaining momentum.
Following better-than-expected results, the company raised its FY26 outlook for net sales and adjusted diluted EPS.
The company said this marked its fourth consecutive quarter of comparable sales gains, supported by its Reimagine 200 initiative. Comparable sales at Reimagine 200 stores rose 2.4 per cent during the quarter.
Bloomingdale’s emerged as the strongest-performing nameplate, with comparable sales surging 10.2 per cent, marking seven consecutive quarters of growth and delivering record first-quarter sales, while Macy’s comparable sales rose 1.6 per cent.
“We are 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,” said Tony Spring, chairman and chief executive officer of Macy’s, Inc.
“Customers are responding, driving comparable sales growth at Macy’s and another standout quarter at Bloomingdale’s, underscoring its leadership in modern luxury. We are operating with discipline and focusing on what matters most, our customers,” Spring added.
Strategic investments lift SG&A expenses
Other revenue rose 8.2 per cent to $210 million during the quarter. Credit card net revenues increased 11.7 per cent to $172 million, supported by what the company described as a healthy credit portfolio. However, Macy’s Media Network revenue declined 5 per cent to $38 million due to the timing of advertising spend.
Gross margin stood at 38.9 per cent, down 30 basis points (bps) YoY. Excluding tariff impacts, the gross margin remained flat compared to the prior-year period.
Selling, general and administrative (SG&A) expenses increased by $39 million to $2 billion, reflecting investments in Reimagine 200 stores, digital operations and luxury businesses, partially offset by cost-management measures.
GAAP net income increased to $63 million, or 1.3 per cent of total revenue, compared to $38 million in the same quarter last year. Adjusted net income rose to $35 million from $31 million a year earlier.
GAAP diluted earnings per share (EPS) improved to $0.23 from $0.13, while adjusted diluted EPS increased to $0.13 from $0.11 in the first quarter of 2025.
Adjusted EBITDA came in at $290 million, representing 5.9 per cent of total revenue, compared to $304 million, or 6.3 per cent, in the prior-year quarter.
Macy’s upgrades FY26 financial guidance
Following the stronger performance, Macy’s revised its fiscal 2026 guidance upwards. The company now expects net sales between $21.5 billion and $21.75 billion, compared to its earlier guidance of $21.4 billion to $21.65 billion.
Comparable sales are now projected to rise between 0.5 per cent and 1.2 per cent, an improvement from the earlier outlook of a decline of 0.5 per cent to growth of 0.5 per cent.
Adjusted diluted EPS guidance was also raised to $2-2.20 from the previous range of $1.90-$2.10. Macy’s maintained its adjusted EBITDA margin forecast at 7.7-7.9 per cent of total revenue.
The company noted that its outlook continues to account for macroeconomic and geopolitical uncertainties affecting discretionary spending, while assuming tariff impacts will be greater in the first half of the year than in the second half.
Fibre2Fashion News Desk (SG)
