Bloomingdale’s and Bluemercury helped drive Macy’s Inc.’s first quarterly sales growth in nearly four years, reinforcing the company’s push toward higher-potential stores and affluent consumers.
Key Takeaways
- Macy’s Inc. raised its 2026 outlook after first-quarter sales and earnings exceeded expectations.
- Bloomingdale’s remained the standout performer, with comparable sales up 10.2%, marking its seventh consecutive quarter of growth.
- Bluemercury continued to support the premium growth story, posting a 6.4% comparable sales increase.
- The Macy’s nameplate showed modest improvement, with comparable sales up 1.6%, while its 200 reimagined stores rose 2.4%.
- The results strengthen the case for Macy’s “Bold New Chapter” strategy, which centers on store reinvestment, higher-potential locations, premium assortments, digital growth, and disciplined cost management.
Macy’s Inc. raised its full-year outlook after a stronger-than-expected first quarter, with growth across its three nameplates and standout momentum at Bloomingdale’s. The results offer an early signal that the retailer’s “Bold New Chapter” strategy is gaining traction, particularly in categories and store formats aimed at higher-value customers.
For the first quarter ended May 2, comparable sales rose 3%, ahead of company guidance, while go-forward comparable sales increased 3.1%. Total sales reached $4.7 billion, up from $4.6 billion in the prior-year period, marking the company’s first quarterly sales growth in nearly four years. Net income rose to $63 million from $38 million, while adjusted earnings per share increased to $0.13 from $0.11.
Bloomingdale’s delivered the strongest performance, with comparable sales up 10.2%, marking its seventh consecutive quarter of gains. The upscale department store has continued to benefit from its emphasis on luxury and premium assortments, elevated service, and stronger positioning with affluent shoppers. Bluemercury also posted solid growth, with comparable sales up 6.4%, further reinforcing the value of Macy’s Inc.’s more premium-facing portfolio.
At the Macy’s nameplate, comparable sales increased 1.6%. Within the company’s 200 “reimagined” stores, comparable sales rose 2.4%, reflecting investments in staffing, product freshness, visual presentation, and higher-traffic areas including women’s shoes and fitting rooms. The performance supports Macy’s strategy of concentrating capital on locations with stronger growth potential while continuing to rationalize underperforming stores.
The quarter also reflects a broader split in U.S. consumer spending, as higher-income shoppers continue to support demand for premium apparel, beauty, and accessories while value-conscious consumers remain more pressured. For Macy’s Inc., that dynamic places added importance on Bloomingdale’s and Bluemercury, both of which appear increasingly central to the company’s growth narrative.
Macy’s now expects 2026 net sales between $21.5 billion and $21.75 billion, up from its previous forecast of $21.4 billion to $21.65 billion. Comparable sales are projected to rise between 0.5% and 1.2%, compared with the prior range of down 0.5% to up 0.5%. Adjusted diluted earnings per share are now expected between $2 and $2.20, above the earlier forecast of $1.90 to $2.10.
The company ended the quarter with $1.3 billion in cash and cash equivalents, $2 billion in available borrowing capacity, and total debt of $2.4 billion. Macy’s said it has no material long-term debt maturities until 2030.
Inventory increased 3.6% year over year, with the company indicating that inventory levels and composition are well positioned heading into summer. Gross margin rate declined 30 basis points to 38.9%, though excluding tariff impact, gross margin was flat to last year. SG&A expense rose $39 million to $2 billion, reflecting ongoing investments in go-forward Macy’s stores, Bloomingdale’s, Bluemercury, and digital, balanced by continued cost management.
For Macy’s Inc., the quarter points to a more disciplined retail model built around selective reinvestment, premium positioning, and sharper store segmentation. Bloomingdale’s remains the clearest bright spot, while the reimagined Macy’s locations suggest that the company’s core nameplate can still generate growth when capital is directed with precision.