“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,” said Tony Spring, chairman and chief executive officer of Macy’s, Inc. “Customers are responding – driving comparable sales growth at Macy’s and another standout quarter at Bloomingdale’s, underscoring its leadership in modern luxury. We’re operating with discipline and focusing on what matters most – our customers. With the power of our multi-brand, multi-category, multi-generational portfolio, we’re confident in our path to sustainable, profitable growth. And we’re excited to continue our year of celebrations at Macy’s, including the 50th anniversary of Macy’s Fourth of July Fireworks, as we mark the nation’s 250th.”
First Quarter 2026 Results
(versus first quarter of 2025)
Macy’s, Inc. net sales, inclusive of store closures, increased 1.8 percent year-over-year (y/y) to $4.7 billion in the fiscal first quarter ended May 2, with comparable sales up 3.0 percent y/y. Comparable sales were said to be positive at each of the company’s nameplates.
Macy’s, Inc.’s comparable sales for its go-forward business were up 3.1 percent. By nameplate:
- Macy’s comparable sales were up 1.6 percent y/y.
- Reimagined 200 locations; comparable sales were up 2.4 percent y/y.
- Bloomingdale’s comparable sales were up 10.2 percent y/y.
- Bluemercury’s comparable sales were up 6.4 percent y/y.
Other revenue increased 8.2 percent y/y to $210 million. Within other revenue:
- Credit card net revenues increased 11.7 percent y/y to $172 million, said to be primarily due to the company’s healthy credit portfolio.
- Macy’s Media Network’s net revenue decreased 5.0 percent y/y to $38 million, reflecting the timing of advertising spend on a year-over-year basis.
Profitability & Expenses
The gross margin rate declined 30 basis points y/y to 38.9 percent of revenue in Q1. Excluding a 30-basis-point tariff impact, gross margin was even with last year.
Selling, general and administrative (SG&A) expense of $2.0 billion increased $39 million, reflecting the company’s ongoing investments in the go-forward business, including Reimagine 200 locations, Bloomingdale’s and digital across nameplates, partially offset by the net benefit from continued cost management efforts. As a percent of total revenue, SG&A expense was 39.9 percent, unchanged from the prior year period.
GAAP net income was $63 million, or 1.3 percent of total revenue, and Adjusted net income was $35 million, or 0.7 percent of total revenue. In the first quarter of 2025, net income was $38 million, or 0.8 percent of total revenue, and Adjusted net income was $31 million, or 0.6 percent of total revenue.
GAAP and Adjusted diluted EPS were 23 cents a share and 13 cents a share, respectively. In the first quarter of 2025, GAAP and Adjusted diluted EPS were 13 cents a share and 11 cents a share, respectively.
Adjusted earnings before interest, taxes, and depreciation and amortization (EBITDA) were $290 million, or 5.9 percent of total revenue. In the first quarter of 2025, adjusted EBITDA was $304 million, or 6.3 percent of total revenue.
Balance Sheet and Liquidity
- Merchandise inventories increased 3.6 percent year-over-year. The company believes the composition and level of inventories are well-positioned heading into summer 2026.
- The company ended the first quarter of 2026 with cash and cash equivalents of $1.3 billion and had $2.0 billion available borrowing capacity under its asset-based credit facility.
- As of the end of the first quarter of 2026, total debt was $2.4 billion. The company has no material long-term debt maturities until 2030.
Shareholder Returns
- Through its quarterly dividend, the company returned $50 million in cash to shareholders in the first quarter of 2026. Additionally, on May 15, 2026, Macy’s, Inc.’s board of directors declared a regular quarterly dividend of 19.15 cents per share on Macy’s, Inc.’s common stock, payable on July 1, 2026, to shareholders of record at the close of business on June 15, 2026.
- During the first quarter of 2026, the company repurchased 2.6 million shares for $50 million. The company had approximately $1.1 billion remaining under its $2.0 billion share of repurchase authorization as of the end of the first quarter of 2026.
2026 Guidance
The company revised its annual fiscal year 2026 guidance, including raising net sales, comparable sales, and adjusted diluted EPS guidance.
Full-year guidance continues to acknowledge that macroeconomic and geopolitical factors could influence discretionary spending. As such, the company continues to take a prudent approach to guidance, giving flexibility within its business model to respond to changes in the competitive landscape and external environment. Guidance assumes the first half of the year will have a larger tariff impact than the second half and does not include the potential receipt of refunds from tariffs. Additionally, guidance reflects investments in the company’s Reimagine 200 locations and luxury nameplates to support long-term top-line growth.
For Macy’s, Inc. the company expects:
Image courtesy Macy’s, Inc.
