Key Highlights
- First-quarter comparable sales climbed 3%, marking the strongest Q1 performance since 2021
- Total revenue reached $4.68 billion, surpassing Wall Street’s $4.61 billion forecast
- Adjusted earnings per share of 13 cents significantly exceeded analyst projections of 3 cents
- Company lifted full-year EPS outlook to $2.00–$2.20 from previous range of $1.90–$2.10
- Shares climbed over 2% during premarket hours Wednesday following the announcement
Macy’s delivered impressive first-quarter earnings Wednesday, reporting a 3% increase in comparable sales—marking its best Q1 showing in four years. Investors responded positively, pushing shares up more than 2% before the opening bell.
The department store chain reported total revenue of $4.68 billion, exceeding analyst expectations of $4.61 billion. Meanwhile, adjusted earnings per share reached 13 cents, dramatically outperforming the Wall Street consensus of just 3 cents.
For the quarter ending May 2, net income climbed to $63 million, translating to 23 cents per share, compared with $38 million, or 13 cents per share, in the same period last year.
Buoyed by the solid quarterly performance, management increased its full-year projections. The retailer now anticipates adjusted EPS between $2.00 and $2.20, representing an upgrade from the previous $1.90 to $2.10 range. Annual net sales guidance also improved to $21.5 billion–$21.75 billion.
Full-year comparable sales are projected to increase between 0.5% and 1.2%, a notable improvement from the prior forecast that ranged from a 0.5% decline to a 0.5% increase.
CEO Tony Spring emphasized that the impressive results demonstrate genuine momentum in the company’s transformation efforts rather than temporary gains. “We’re not doing the fancy stuff, we’re doing the stuff that makes the biggest difference,” he explained to analysts.
Spring noted that while tax refunds provided support during Q1, the positive momentum has carried forward into the current quarter. “Pleased with the second quarter to date,” he stated.
Bloomingdale’s Emerges as Top Performer
Bloomingdale’s delivered exceptional results, posting a 10.2% surge in comparable sales during the quarter. Spring attributed the success to a compelling brand portfolio, a distinctive customer experience, and potential market share gains following challenges faced by competitor Saks Fifth Avenue.
“Is the disruption in the marketplace helpful to us? Sure,” Spring acknowledged. “Is it the primary reason we’re growing? No.”
The 200 upgraded Macy’s locations—stores that received investments as part of the transformation initiative—continued delivering superior results at the flagship brand, which reported 1.6% comparable sales growth.
Transformation Strategy: Focusing on Fundamentals
Macy’s is currently midway through a three-year transformation plan under Spring’s leadership as CEO. The initiative centers on shuttering underperforming locations while reinvesting resources into retained stores—enhancing staffing levels, refining merchandise selection, and elevating the overall shopping environment.
The retailer recently unveiled Ask Macy’s, an AI-powered shopping assistant. Initial customer feedback has been encouraging, according to Spring.
Macy’s is also amplifying its signature events. Upcoming plans feature an enhanced 4th of July Fireworks celebration commemorating America’s 250th birthday, the centennial Macy’s Thanksgiving Day Parade, and multiple World Cup-related activities this summer.
CFO Tony Edwards characterized the revised guidance as taking a “prudent approach,” noting that potential impacts from reduced tariffs and elevated fuel expenses should roughly balance out.
Spring reported that consumer spending patterns have remained consistent entering the second quarter, with no significant changes observed across Macy’s three retail brands.
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