“It’s a good moment for the company overall and I don’t take it for granted.”
That’s Tony Spring, chairman and chief executive officer of Macy’s Inc., recapping the retailer’s stellar first quarter. It was highlighted by a comparable sales gain of 3 percent, a remarkable 10.2 percent comparable sales gain at Bloomingdale’s, increased profitability, steady traffic in stores despite the nation’s declining consumer confidence, and news that the company raised its outlook for 2026 sales and profits.
“Bloomingdale’s had its best first quarter in its 154-year history,” Spring told WWD. “The assortments look superb. It’s a great combination of advanced contemporary to designer. The colleagues are all engaged. We’ve got some terrific sellers on the team. The marketing is fresh and innovative.”
He said Bloomingdale’s current success reflects “many years of work convincing and exciting the marketplace to be part of the Bloomingdale’s ecosystem.”
Bloomingdale’s is capitalizing on the bankruptcy and downsizing of Saks Global. “If Bloomingdale’s wasn’t running a good shop, it wouldn’t matter,” Spring told WWD. “I’ve seen plenty of times where businesses get difficult and others don’t capitalize on it because they’re not running good businesses. The Bloomingdale’s team for many years now has been running a very good business. A fire is burning at Bloomingdale’s, and then you get some gasoline from disruption in the marketplace, so it burns faster. It’s a benefit but it doesn’t start it. What starts it is great strategy, great leadership and great execution.”
Spring said he was “very excited” about Bloomingdale’s organic growth, largely traced to the ongoing elevation of its brand matrix. In addition, Bloomies, the contemporary, scaled-down, specialized version of Bloomingdale’s department stores, and Bloomingdale’s outlets continue to add locations. Bloomingdale’s operates 31 department stores, 25 Bloomingdale’s outlets and four Bloomie’s units.
No additional Bloomingdale’s department stores are planned, though with the format in only about 14 of the nation’s top markets, there’s opportunity for growth, including Texas and the Pacific Northwest where there are none. “We are just going to be patient and thoughtful,” Spring said.
At Macy’s Inc. as well as Target, Lululemon, Victoria’s Secret and Walmart, sales were up last quarter despite consumer confidence at all-time lows due to rising prices and wars overseas. “It’s true the consumer is not confident based on these macroeconomic and geopolitical situations,” Spring acknowledged. “They’re worried and ask, ‘what’s going on?’”
But life goes on, with proms, graduations, family vacations and other reasons to shop, Spring suggested. “We are in an emotional business. We are in an inspirational business. How people feel about one political party or another or what’s in the news, doesn’t necessarily mean they’re not going to spend. Having a middle-to-upper-end consumer base is an advantage for us because it’s not a question of having the money. It’s a question of do they feel good about spending.”
He’s upbeat on back-to-school. “There’s a lot of variety in our kids’ assortment today that didn’t exist a couple of years ago. That bodes well for a strong back-to-school” season. The Macy’s brand has created a stronger “good, better, best assortment that feels differentiated,” Spring said, citing Nike, Jordan, Ralph Lauren, and Abercrombie boys, girls, infants and toddlers, among the additions.
Even before, Macy’s should get a lift from tie-ins to the World Cup with the mezzanine at the Herald Square flagship merchandised with games, soccer balls, team jerseys and swag, and its Fourth of July Fireworks display and merchandise ties, since it’s the nation’s 250th birthday. Macy’s fireworks display will be bigger than ever with barges, for the first time, on both the Hudson and East rivers. There are also bigger-than-usual plans afoot for Macy’s Thanksgiving Day Parade since this year marks the 100th staging of the event.
“It’s a year of celebrations. You have milestone moments for the country and milestone moments for the Macy’s brand,” Spring said.
Macy’s stock price was up 0.6 percent, or 13 cents, to $21.80 by the close of trading Wednesday.
Last March, Macy’s launched “Ask Macy’s,” an AI-powered conversational shopping assistant or “agent” shaped by data and insights from thousands of colleagues. Soon, an agent will be implemented at Bloomingdale’s. “It’s conversational search to get an answer that meets your needs without wasting your time. The consumer likes it. We are using it to educate our colleagues as well,” said Spring.
More generally with AI, “We have 35 different use cases,” Spring said. “Our focus is on growing revenue, making shopping easier and more interesting, and easier for our colleagues to operate and create efficiency and profitability. We use AI to achieve those three objectives. We are using it in the supply chain, on the websites, in our call centers, our HR pyramid, in reports for our store managers to learn how to better operate buildings with the multitude of tasks they have.”
Asked if AI, in its early stages of adoption at Macy’s Inc., will reduce the workforce, Spring answered, “There will certainly be changes to the type of work people do. I don’t see us moving to a self-serve environment. There will be plenty of opportunity for people to up-skill, focus more on serving the customer, for buyers touching and procuring product, and have mundane tasks done by technology. AI will push people to get to the most important tasks.”
Recapping other first-quarter highlights, Spring said Macy’s Inc.’s 3 percent comp gain for the quarter, which ended May 2, exceeded the company’s guidance and was led by go-forward comparable sales, which were up 3.1 percent. Go-forward sales exclude stores that are being closed. Total sales rose to $4.7 billion from $4.6 billion.
Adjusted net income rose to $35 million from $31 million. Adjusted earnings per share rose to 13 cents from 11 cents. Adjusted earnings before interest, taxes, depreciation and amortization slipped to $290 million from $304 million.
By division, Macy’s comparable sales rose 1.6 percent, inclusive of the 200 “reimagined” Macy’s stores where comparable sales grew 2.4 percent. Spring said Macy’s reimagined stores have grown for the last eight of nine quarters. Macy’s reimagined stores are those receiving significant investments for increased staffing in high-traffic areas such as women’s shoes and fitting room areas, fresher products and improved visuals. Rothy’s, Donna Karan Weekend, Ted Baker Men’s and Abercrombie infants and toddler were among the lines added to the assortment. Reiss, Free People and Theory and Rodd & Gunn were among the labels that added points of distribution.
Watches, petites, dresses, women’s career wear, kids, handbags, fragrances, and shoes all outperformed, while big-ticket home items, especially furniture, and plus-sizes, were soft, Spring observed.
Bloomingdale’s 10.2 percent comp gain marked seven consecutive quarters of gains. The upscale department store has been adding luxury and premium brands, elevating service and capturing greater market share. Ready-to-wear, men’s apparel, fine jewelry, shoes, and tabletop all outperformed. Among the luxury lines new to the assortment: Chloe ready-to-wear, Isabel Marant, Phoebe Philo, Parke denim, Heirloom and Khaite shoes.
Bluemercury’s comparable sales increased 6.4 percent. Results were driven by makeup, dermatological skin care and fragrance.
Due to the momentum seen so far this year, the retailer raised its outlook for total 2026 sales to between $21.5 billion and $21.75 billion, from the previous forecast for $21.4 billion to $21.65 billion in sales. Comparable sales are now seen ranging from up 0.5 percent to 1.2 percent, compared to the previous forecast of from negative 0.5 percent to plus 0.5 percent.
Adjusted diluted earnings per share are now seen ranging from $2 to $2.20, compared to $1.90 to $2.10 per share previously forecast.
Tony Spring
Masato Onoda/WWD
In other statistics, merchandise inventories increased 3.6 percent year-over-year, but executives said the composition and level of inventories are well-positioned heading into summer 2026.
Gross margin rate of 38.9 percent declined 30 basis points. Excluding a tariff impact of 30 basis points, gross margin was even with last year.
Selling, general and administrative expense of $2 billion increased $39 million, reflecting the company’s ongoing investments in the go-forward business, including the reimagined 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 a year ago.
The company ended the first quarter of 2026 with cash and cash equivalents of $1.3 billion and had $2 billion of 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. Macy’s has no material long-term debt maturities until 2030.
