Macy's Lifts Full-Year Outlook as Turnaround Continues to Gain Traction

Macy's said its turnaround strategy produced stronger-than-expected first-quarter results, prompting the retailer to raise its full-year sales and earnings forecasts. The company highlighted improved assortment and stronger demand in higher-end banners.

For the quarter ended May 2, Macy's reported comparable sales increased 3%. Comparable sales at Macy's stores rose 1.6%, while Bloomingdale's posted a 10.2% gain and Bluemercury rose 6.4%. Net sales climbed to $4.68 billion from $4.6 billion a year earlier. The company recorded net income of $63 million, or $0.23 per share; adjusted earnings per share were $0.13, ahead of FactSet estimates.

Following the results, Macy's raised its full-year net sales outlook to $21.5 billion–$21.75 billion from $21.4 billion–$21.65 billion, and lifted adjusted EPS guidance to $2.00–$2.20 from $1.90–$2.10. Comparable sales guidance was also increased to a 0.5%–1.2% rise versus prior expectations of between -0.5% and 0.5%. The revisions reflect management's view that the early stages of the turnaround are gaining momentum.

The retail sector still faces pressures from higher gasoline prices and geopolitical uncertainty that can squeeze consumer spending, but Macy's strategy of pruning underperforming locations, investing in stronger stores and focusing on luxury and beauty assortments appears to be resonating with higher-income shoppers. Management noted weaker demand in furniture but strength in categories such as dresses, men's shoes and fragrances.

Analysts say the upgraded guidance is a positive sign for Macy's, but caution that sustained improvement depends on overall consumer trends and margin pressures from tariffs and input costs. Investors will watch upcoming quarters to see whether Macy's can translate comparable-sales momentum into broader profitability across its store footprint.