Macy's Reports Strongest Q1 in Four Years

By Ahmed Jamerson • Wednesday, June 03 13:04 • Permanent Link

Macy’s Inc. said first-quarter 2026 comparable sales rose 3.0%, its strongest first quarter in four years, as gains across all three nameplates lifted results and the company raised its full-year outlook.

Net sales increased 1.8% from a year earlier to $4.7 billion. The company’s go-forward business posted comparable sales growth of 3.1%.

By banner, Macy’s comparable sales rose 1.6%, including a 2.4% gain at its Reimagine 200 stores. Bloomingdale’s was the standout, with comparable sales up 10.2% and its seventh straight quarter of growth. Bluemercury comparable sales increased 6.4%.

Other revenue climbed 8.2% to $210 million. Credit card net revenues increased 11.7% to $172 million, while Macy’s media network revenue fell 5.0% to $38 million.

Gross margin rate was 38.9%, down 30 basis points from a year ago. Selling, general and administrative expense rose $39 million to $2.0 billion, though it remained unchanged at 39.9% of total revenue.

Net income increased to $63 million from $38 million a year earlier. Diluted earnings per share rose to $0.23 from $0.13. Adjusted diluted EPS increased to $0.13 from $0.11. Adjusted EBITDA was $290 million, down from $304 million.

Inventories increased 3.6% year over year. Macy’s ended the quarter with $1.3 billion in cash and cash equivalents and $2.0 billion of available borrowing capacity. Total debt was $2.4 billion.

The company returned $50 million to shareholders through dividends and repurchased 2.6 million shares for $50 million during the quarter. It also said it had about $1.1 billion remaining under its $2.0 billion buyback authorization.

Macy’s raised its full-year 2026 net sales outlook to $21.5 billion to $21.75 billion, from $21.4 billion to $21.65 billion. It now expects comparable sales growth of 0.5% to 1.2%, improved from the prior range of a 0.5% decline to 0.5% growth. Adjusted diluted EPS guidance was lifted to $2.00 to $2.20 from $1.90 to $2.10. Today the company's shares have moved -1.18% to a price of $21.415. Check out the company's full 8-K submission here.

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