Department-store chain Macy's raised its full-year guidance after delivering better-than-expected first-quarter results, with comparable sales climbing 3% in what the company described as its strongest first-quarter showing in four years.
A stronger start to the year
The 3% rise in comparable sales pointed to improving demand across Macy's business and suggested that the retailer's turnaround initiatives are gaining traction. The performance gave management the confidence to raise expectations for the remainder of the fiscal year.
Updated outlook
Following the quarter, Macy's now expects:
- Full-year 2026 net sales between $21.5 billion and $21.75 billion
- Adjusted earnings per share between $2.00 and $2.20
- Continued momentum from its best first quarter in four years
Behind the improvement
Macy's has pursued a multi-pronged strategy to revitalize its business, including sharpening its merchandise assortment, investing in higher-performing locations and refining its omnichannel approach to blend stores and e-commerce. The latest results indicate those efforts are beginning to register with shoppers.
Navigating a tricky retail backdrop
The broader retail environment in 2026 has remained volatile, shaped by shifting consumer behavior, tariff-related cost pressures and rapid adoption of new technologies. Against that backdrop, a comparable-sales gain and a raised forecast stand out as encouraging signals for a legacy retailer.
What to watch
- Whether comparable-sales momentum continues through the year
- The impact of cost pressures on margins
- Progress on store and omnichannel investments
- How the company balances promotions with profitability
Raising guidance early in the fiscal year carries risk, but Macy's results suggest management sees a credible path to stronger performance. For a chain that has faced persistent questions about the future of department stores, the quarter offered a measure of reassurance to investors watching for signs of a sustainable rebound.