Macy's updates annual guidance following positive first quarter growth

The US retail group Macy’s, Inc. (Macy’s) has reported positive financial results for the first quarter of 2026, driven by growth across all its brand nameplates. The performance has led the department store operator to raise its full year net sales, comparable sales and adjusted diluted earnings per share guidance.

Net sales for the first quarter increased 1.8 percent to 4.70 billion dollars, up from the same period last year despite the impact of previous store closures. Total comparable sales for the group rose 3 percent, driven by its go-forward business which grew 3.1 percent.

Tony Spring, chairman and chief executive officer of Macy’s, stated: “We’re off to a strong start to the year, exceeding expectations for the fifth consecutive quarter as our Bold New Chapter strategy continues to build momentum. Customers are responding – driving comparable sales growth at Macy’s and another standout quarter at Bloomingdale’s, underscoring its leadership in modern luxury.”

Brand performance and revenue streams

The company experienced gains across its entire retail portfolio. The core Macy’s brand recorded a 1.6 percent rise in comparable sales, lifted by a 2.4 percent increase at its Reimagine 200 locations.

The luxury division showed further acceleration during the quarter. Bloomingdale’s posted a 10.2 percent increase in comparable sales, marking seven consecutive quarters of growth for the banner. Meanwhile, beauty specialist Bluemercury delivered a 6.4 percent increase in comparable sales.

Other revenue streams rose 8.2 percent to 210 million dollars, driven by an 11.7 percent increase in credit card net revenues to 172 million dollars due to a healthy credit portfolio. This growth offset a 5 percent decline in Macy’s Media Network net revenue, which dropped to 38 million dollars due to the timing of advertising spend on a year-over-year (YoY) basis.

Gross margin and net income

The gross margin rate declined by 30 basis points to 38.9 percent. The group reported a GAAP net income of 63 million dollars, representing 1.3 percent of total revenue, compared to 38 million dollars in the first quarter of 2025. Adjusted net income reached 35 million dollars, up from 31 million dollars in the previous year.

GAAP diluted earnings per share (EPS) stood at 0.23 dollars, while adjusted diluted EPS came in at 0.13 dollars. Adjusted EBITDA reached 290 million dollars, representing 5.9 percent of total revenue, down from 304 million dollars in the prior year period.

Updated outlook

During the first quarter, Macy’s returned 50 million dollars to shareholders through dividends and repurchased 2.60 million shares for 50 million dollars. A regular quarterly dividend of 19.15 cents per share has been declared for payment on July 1, 2026.

Following the quarterly performance, the company updated its full year outlook on June 3, 2026. Annual net sales are now projected to be between 21.50 billion dollars and 21.75 billion dollars, up from the previous forecast of 21.40 billion dollars to 21.65 billion dollars. Full year comparable sales growth is expected to range between 0.5 percent and 1.2 percent, while adjusted diluted EPS has been raised to a range of 2 dollars to 2.20 dollars.