Macy’s M-N raised its annual forecasts and posted its first quarterly sales growth in nearly four years on Wednesday, driven by strong demand for high-end apparel and accessories, particularly at its Bloomingdale’s stores.
The results underscore the K-shaped recovery in U.S. consumer spending, with higher-income shoppers continuing to splurge on discretionary and luxury goods while lower-income households pull back amid rising economic uncertainty.
Michael Kors owner Capri Holdings last month provided an upbeat annual profit target, while premium apparel brand Ralph Lauren beat quarterly sales estimates.
“Customers are responding,” Macy’s CEO Tony Spring said, as he presses ahead with the “Bold New Chapter” turnaround that has focused on higher-end labels, including Bloomingdale’s and Bluemercury, expanding full-price sales, reinvesting in higher-potential locations and closing underperforming stores.
Macy’s now expects fiscal 2026 net sales of US$21.5-billion to US$21.75-billion, compared with its prior forecast of US$21.4-billion to US$21.65-billion.
It estimated annual adjusted per-share profit of US$2 to US$2.20, compared with its earlier forecast of US$1.90 to US$2.10.
First-quarter sales rose 1.8 per cent to $4.68-billion, ending 15 consecutive quarters of declines and beating analysts’ average estimate of US$4.61-billion.
On an adjusted basis, Macy’s posted earnings per share of 13 US cents.
At Bloomingdale’s, comparable sales jumped 10.2 per cent, while they rose 6.4 per cent at Bluemercury.
Meanwhile, comparable sales at Macy’s namesake stores ticked up 1.6 per cent.