Macy’s Lifts Full-Year Outlook as Luxury Banners Drive Strong First Quarter

Macy’s has raised its full-year forecast after reporting a stronger-than-expected start to the year.

The department-store chain said on June 3 that comparable sales—sales from established stores and online channels—rose 3 percent in the first quarter of fiscal year 2026, up from a 1.8 percent gain in the fourth quarter of 2025 and marking its best performance of such sales in about four years.

The gains were broad-based across Macy’s three banners, with the strongest momentum coming from its higher-end businesses. Bloomingdale’s posted a 10.2 percent comparable-sales jump, its highest first-quarter sales volume on record. The Bluemercury beauty chain had a 6.4 percent increase.

The namesake Macy’s banner saw a more modest 1.6 percent comparable-sales growth. Performance was stronger at the company’s “Reimagine 200” locations, which rose 2.4 percent and continued to outpace the broader Macy’s fleet.

On the back of those results, Macy’s now expects fiscal 2026 net sales of $21.5 billion to $21.75 billion, up from its prior forecast of $21.4 billion to $21.65 billion. It also raised its adjusted earnings outlook to $2 to $2.20 per share, from $1.90 to $2.10.

The updated guidance is the latest milestone in Macy’s “Bold New Chapter” plan, unveiled in 2024 when the company was facing a yearlong sales decline.

Alongside efforts to simplify its supply chain and improve customer service, the plan centers on upgrading merchandise and leaning more heavily into higher-end offerings.

That includes building more Bloomingdale’s and Bluemercury locations, while continuing to close underperforming stores.

The plan also represents a broader bet on where shoppers are headed. Macy’s has been accelerating the rollout of smaller-format locations outside traditional enclosed malls, a shift from its previous emphasis on expanding the Macy’s Backstage off-price business.

Macy’s CEO Tony Spring said customers are resonating with the changes.

“We found that when the product and the experience are differentiated and compelling, engagement and spend increase during the quarter,” Spring said during a June 3 earnings call.

He also pointed to marketing pushes around holidays and marquee events, such as the Macy’s Flower Show, as traffic drivers that can generate media attention and reinforce the brand.

The company will lean more heavily into those moments through the rest of the year, Spring said. These include an expanded Macy’s Fourth of July fireworks show tied to America’s 250th anniversary, as well as the 100th Macy’s Thanksgiving Day Parade.

The first quarter’s performance also suggests Macy’s is benefiting from a K-shaped consumer trend, in which higher-income shoppers continue to spend on discretionary and luxury goods while lower-income households remain more price-cautious amid economic uncertainty.

“The Macy’s Inc. customer, who is predominantly middle to upper-income, remained resilient in the first quarter,” Spring said.