Macy’s, Inc. (M) Q1 2026: Strong Sales Growth and Raised Guidance — Positive Outlook

Macy’s, Inc. (NYSE: M) reported a strong first quarter for 2026, with net sales increasing by $84 million or +1.8% year-over-year to $4.7 billion. The company achieved a comparable sales growth of 3.0%, marking its strongest first quarter in four years. This performance exceeded the company's guidance and reflects a positive trend across all nameplates, particularly Bloomingdale's, which saw a remarkable 10.2% increase in comparable sales.

This quarter is a good one for shareholders, as it demonstrates Macy's ability to drive sales growth and improve profitability despite ongoing macroeconomic challenges. The company’s strategic initiatives, particularly the Bold New Chapter strategy, are gaining traction, leading to sustained customer engagement and sales momentum.

Key Financial Metrics:

• Net Sales: $4.7 billion, up $84 million or +1.8% YoY
• Comparable Sales Growth: 3.0%, exceeding guidance
• Bloomingdale’s Comparable Sales: 10.2%, marking seven consecutive quarters of gains
• Bluemercury Comparable Sales: 6.4%
• GAAP Diluted EPS: $0.23, up from $0.13 in Q1 2025
• Adjusted Diluted EPS: $0.13, up from $0.11 in Q1 2025
• GAAP Net Income: $63 million, or 1.3% of total revenue, compared to $38 million, or 0.8% of total revenue in Q1 2025
• Adjusted Net Income: $35 million, or 0.7% of total revenue, compared to $31 million, or 0.6% of total revenue in Q1 2025

Macy's also returned $50 million to shareholders through its quarterly dividend and share repurchases. The board declared a regular quarterly dividend of 19.15 cents per share, payable on July 1, 2026. The company repurchased 2.6 million shares for $50 million during the quarter, with approximately $1.1 billion remaining under its $2.0 billion share repurchase authorization.

Guidance Update:

• Net Sales: $21.5 billion to $21.75 billion, up from $21.4 billion to $21.65 billion
• Comparable Sales Change: 0.5% to 1.2%, improved from (0.5%) to 0.5%
• Adjusted Diluted EPS: $2.00 to $2.20, increased from $1.90 to $2.10

The company remains cautious, acknowledging potential macroeconomic and geopolitical factors that could impact discretionary spending. However, the raised guidance reflects confidence in the ongoing execution of its strategic initiatives.

Forward Catalyst:

Investors should watch for continued momentum in comparable sales growth and the impact of the Reimagine 200 initiative, which aims to enhance the customer experience across Macy's locations. Additionally, the upcoming 50th anniversary of Macy's Fourth of July Fireworks could serve as a significant promotional event, potentially driving further sales growth in the second quarter.

In summary, Macy's first quarter results indicate a robust start to 2026, with strong sales growth and an optimistic outlook for the remainder of the year. The company's strategic focus on customer engagement and operational efficiency positions it well for sustainable growth, making this a favorable quarter for shareholders.

Note: All amounts in the following tables are in millions.

	13 Weeks Ended May 2, 2026	13 Weeks Ended May 3, 2025
Net sales	$4,682	$4,599
Other revenue	210	194
Total revenue	$4,892	$4,793
Cost of sales	-2,747	-2,704
Gross profit	2,145	2,089
Selling, general and administrative expenses	-1,854	-1,815
Operating income	291	274
Interest expense, net	-25	-27
Income before income taxes	266	247
Income tax expense	-30	-30
Net income	$63	$38
Diluted earnings per share	$0.23	$0.13

	May 2, 2026	January 31, 2026	May 3, 2025
ASSETS:
Current Assets:
Cash and cash equivalents	$1,294	$1,246	$932
Receivables	302	628	241
Merchandise inventories	4,833	4,412	4,663
Prepaid expenses and other current assets	467	387	445
Income taxes receivable	—	—	10
Total Current Assets	6,896	6,673	6,291
Property and Equipment – net	4,636	4,743	4,964
Right of Use Assets	2,087	2,136	2,226
Goodwill	828	828	828
Other Intangible Assets – net	419	420	424
Other Assets	1,440	1,438	1,356
Total Assets	$16,306	$16,238	$16,089
LIABILITIES AND SHAREHOLDERS’ EQUITY:
Current Liabilities:
Short-term debt	—	—	6
Merchandise accounts payable	2,366	1,807	2,133
Accounts payable and accrued liabilities	2,238	2,615	2,221
Income taxes payable	70	71	27
Total Current Liabilities	4,674	4,493	4,387
Long-Term Debt	2,432	2,432	2,774
Long-Term Lease Liabilities	2,677	2,772	2,884
Deferred Income Taxes	828	805	721
Other Liabilities	858	876	872
Shareholders' Equity	4,837	4,860	4,451
Total Liabilities and Shareholders’ Equity	$16,306	$16,238	$16,089

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