Macy’s Raises FY Sales to $21.5–21.75bn After 3% Q1 Comparable Sales Growth
M•Macy’s reported Q1 net income of $63m, up from $38m a year earlier, on a 1.8% rise in net sales to $4.68bn and 3% comparable sales growth, led by a 10.2% increase at Bloomingdale’s. The company raised its full-year net sales guidance to $21.5bn–$21.75bn and adjusted EPS outlook to $2.00–$2.20.
1. Q1 Financial Performance
In the quarter ended May 2, Macy’s net income rose to $63m, or $0.23 per diluted share, from $38m, or $0.13 per share, a year earlier. Net sales grew 1.8% to $4.68bn while comparable sales increased 3%, marking the strongest quarterly comp growth in four years, and gross margin was 38.9%, down 30 basis points but flat excluding a 30-point tariff impact.
2. Segment Growth
Bloomingdale’s led the portfolio with a 10.2% jump in comparable sales for its seventh consecutive quarter of growth. The Macy’s banner saw a 1.6% comp gain and Bluemercury delivered a 6.4% increase, while 200 Reimagine stores recorded 2.4% comparable sales growth following targeted investments.
3. Updated Full-Year Guidance
Based on strong Q1 results, Macy’s lifted its full-year net sales forecast to $21.5bn–$21.75bn from $21.4bn–$21.65bn and now targets comparable sales growth of 0.5%–1.2%. Adjusted diluted EPS guidance was raised to $2.00–$2.20 from $1.90–$2.10 as the company’s strategic initiatives continue to gain traction.
4. Liquidity and Capital Return
At quarter end, Macy’s held $1.3bn in cash and equivalents with $2bn available under its credit facility against $2.4bn in total debt. During the period, the retailer returned $50m to shareholders via dividends and repurchased $50m of its shares.
