Macy’s said on Wednesday that it raised its fiscal outlook after posting its first quarterly sales increase in nearly four years, driven by robust demand for higher-end apparel and accessories. The gain was concentrated at Bloomingdale’s and Bluemercury, the company said, highlighting a divide in consumer spending that favors higher-income shoppers.
The company reported first-quarter sales of $4.68 billion, an increase of 1.8% that ended a run of 15 consecutive quarters of declines. That figure topped analysts’ average projection of $4.61 billion. On an adjusted basis, Macy’s reported earnings per share of $0.13.
Comparable sales rose 10.2% at Bloomingdale’s and 6.4% at Bluemercury, while Macy’s namesake stores saw a more modest 1.6% increase in comparable sales. The results reflect the retailer’s ongoing shift toward more premium labels and categories.
Chief Executive Tony Spring said, "Customers are responding," as he continues to implement the company’s "Bold New Chapter" strategy. The plan centers on expanding full-price sales, reinvesting in locations with stronger potential, closing underperforming stores and leaning into higher-end brands, including Bloomingdale’s and Bluemercury.
Following the quarter, Macy’s raised its fiscal 2026 net sales guidance to a range of $21.50 billion to $21.75 billion, up from a prior forecast of $21.40 billion to $21.65 billion. It also increased its estimated annual adjusted earnings per share to $2.00 to $2.20, from the earlier range of $1.90 to $2.10.
The company’s results and guidance come as parts of the U.S. consumer market diverge. Macy’s described the picture as a K-shaped recovery, with affluent shoppers continuing to spend on discretionary and luxury items while lower-income households have pulled back amid rising economic uncertainty.
The retailer’s update followed other signals from the apparel sector: Capri Holdings, owner of Michael Kors, issued an upbeat annual profit target last month, and Ralph Lauren reported quarterly sales that exceeded estimates.
Market implications
- Retailers focused on premium apparel and accessories may benefit if higher-income consumer demand persists.
- Macy’s strategy to concentrate capital and inventory on higher-potential locations and full-price selling is reflected in its improved sales and raised guidance.