Macy's reported its strongest first-quarter comparable sales performance in four years, with overall same-store sales growing 3%. The company raised its 2026 outlook, projecting net sales between $21.5 billion and $21.75 billion and earnings per share between $2 and $2.20. CEO Tony Spring attributed the growth to higher-income shoppers, particularly at Bloomingdale's, which saw a 10.2% increase in same-store sales. Macy's namesake stores posted a 1.6% gain, marking its fourth consecutive quarter of sales growth.
The company's turnaround efforts, including store upgrades and improved customer service, have resonated with customers. Spring noted that the economic environment continues to favor wealthier households, with the K-shaped recovery dividing consumer spending. Despite record-low consumer sentiment and high gas prices, Macy's has maintained momentum, with trends continuing into the second quarter. The company also benefited from higher-than-usual tax refunds and the bankruptcy of rival Saks Fifth Avenue, though Spring downplayed the latter as the primary driver of growth.
Macy's has been modernizing its stores and focusing on exclusive merchandise to differentiate its luxury offerings. The company's Bluemercury cosmetics chain also reported a 6.4% comparable sales gain. While Macy's faces broader retail challenges, its strategic investments and focus on affluent customers have contributed to its recent success.