Macy’s posted better-than-expected first-quarter results Wednesday, with comparable sales rising 3% — the strongest Q1 performance in four years. The stock was up more than 2% in premarket trading on the news.
Revenue came in at $4.68 billion, ahead of the $4.61 billion Wall Street expected. Adjusted EPS hit 13 cents, blowing past the 3-cent analyst estimate by a wide margin.
Net income for the quarter ended May 2 rose to $63 million, or 23 cents per share, up from $38 million, or 13 cents per share, a year ago.
MACY’S $M EARNINGS ARE OUT!
EPS: $0.13 | Est. $0.03
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The strong results gave management the confidence to raise full-year guidance. Macy’s now expects adjusted EPS of $2.00 to $2.20, up from a prior range of $1.90 to $2.10. Full-year net sales guidance was lifted to $21.5 billion–$21.75 billion.
Comparable sales for the full year are now expected to rise 0.5% to 1.2%, compared to a prior outlook that ranged from a 0.5% drop to a 0.5% gain.
CEO Tony Spring said the better-than-expected results reflect real progress in the company’s ongoing turnaround, not just a one-time bump. “We’re not doing the fancy stuff, we’re doing the stuff that makes the biggest difference,” he told analysts.
Spring said tax refunds helped in Q1, but the same trends have continued into Q2. “Pleased with the second quarter to date,” he said.
Bloomingdale’s was a clear standout, with comparable sales surging 10.2% in the quarter. Spring credited a strong brand lineup, a differentiated shopping experience, and the recent bankruptcy of rival Saks Fifth Avenue as contributing factors.
“Is the disruption in the marketplace helpful to us? Sure,” Spring said. “Is it the primary reason we’re growing? No.”
The 200 “reimagined” Macy’s stores — locations that have received upgrades as part of the turnaround — continued to drive outperformance at the namesake banner, where comparable sales rose 1.6%.
Macy’s is about two years into a three-year turnaround that Spring has led since taking over as CEO. The strategy has focused on closing underperforming stores and reinvesting in the ones kept open — better staffing, improved assortment, and a more enjoyable in-store experience.
The company recently launched Ask Macy’s, an AI-powered shopping assistant. Early response has been positive, Spring said.
Macy’s is also doubling down on marquee events. Plans include an expanded 4th of July Fireworks to mark America’s 250th anniversary, the 100th Macy’s Thanksgiving Day Parade, and a series of World Cup events this summer.
CFO Tony Edwards said the updated guidance reflects a “prudent approach,” adding that the impact of lower tariffs and higher fuel costs should largely offset each other.
Spring said consumer behavior has remained steady heading into Q2, with no meaningful shift in spending patterns across any of Macy’s three banners.
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