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    Earnings call· Apr 2026(Q1 FY27)

    Macy's Q1 FY27 earnings call M

    Jun 3, 2026 Source

    Executive summary

    Macy's, Inc. Q1 FY27 — Strong Q1 Performance Driven by Bold New Chapter Initiatives

    Macy's, Inc. delivered a strong first quarter, with enterprise-wide growth and better-than-expected performance across key metrics, driven by its Bold New Chapter strategy. All nameplates and channels achieved positive comparable sales, marking the best Q1 comp in four years. The company is raising its full-year outlook, reflecting continued momentum and disciplined expense management, while acknowledging macroeconomic uncertainties.

    Highlights

    5

    • Macy's Inc. net sales grew 1.8% to $4.7 billion, exceeding guidance.

    • Comparable sales rose 3%, the strongest first quarter since 2022, well above guidance of 0.5% to 1.5%.

    • Bloomingdale's achieved a positive 10.2% comp, its highest first quarter sales in 154-year history.

    • Adjusted diluted EPS of $0.13 was well above the high end of guidance ($0.01 loss to $0.01 gain).

    • Operating cash flow was an inflow of $292 million, a significant improvement from an outflow of $64 million last year.

    Concerns

    4

    • Big-ticket home, especially furniture, showed softer trends due to tariffs and interest rates.

    • Plus-size business experienced softer trends, continuing a pattern from previous periods.

    • Macy's Media Network revenue was $38 million, 5% below last year, reflecting timing of advertising spend.

    • Tariffs and fuel costs are expected to have a combined $0.03 to $0.04 negative impact to Q2 EPS and 20-40 bps negative impact to gross margin.

    Guidance & targets

    14
    CategoryTargetConfidence
    Net sales
    $4.75B-$4.8B
    high materiality
    High
    Comparable sales
    flat to up 1%
    high materiality
    High
    Adjusted EBITDA as percent of total revenue
    6.9%-7.2%
    medium materiality
    High
    Adjusted diluted EPS
    $0.29-$0.34
    high materiality
    High
    Net sales
    $21.5B-$21.75B
    high materiality
    High
    Comparable sales
    up 0.5%-1.2%
    high materiality
    High
    Other revenue
    $920M
    medium materiality
    High
    Gross margin as percent of net sales
    38.4%-38.6%
    high materiality
    High
    SG&A dollar growth
    up 1%-2%
    medium materiality
    High
    Adjusted EBITDA as percent of total revenue
    7.7%-7.9%
    high materiality
    High
    Interest expense
    $100M
    low materiality
    High
    Adjusted diluted EPS
    $2.00-$2.20
    high materiality
    High
    Credit card business growth
    at the rate of the overall business
    low materiality
    Medium
    Macy's Media Network growth
    for the year
    low materiality
    Medium

    Segment performance

    4
    SegmentRevenueYoYQoQMargin
    Macy's, Inc. (Go-Forward)
    Go-forward Macy's Inc. comp sales include the approximately 350 Macy's go-forward locations in digital and Bloomingdale's and Bluemercury nameplates inclusive of stores and Digital.
    Comparable sales: 3.1%
    		—3.1%——
    Macy's Nameplate
    Macy's nameplate achieved positive 1.6% comparable sales with Reimagine locations growing 2.4%. Reimagine locations account for nearly 60% of go-forward Macy's stores and 75% of fiscal 2025 go-forward Macy's store sales.
    Comparable sales: 1.6%Reimagine locations comparable sales: 2.4%Net Promoter Score: highest first quarter on record
    		—1.6%——
    Bloomingdale's
    Bloomingdale's achieved double-digit comps and its best first quarter sales volume on record, driven by strong growth in ready-to-wear, men's apparel, fine jewelry, shoes, and tabletop.
    Comparable sales: 10.2%First quarter sales volume: best on record in 154-year history
    		—10.2%——
    Bluemercury
    Bluemercury comparable sales growth accelerated to 6.4%, driven by makeup, dermatological skin care, and fragrances. New and remodeled stores remained outperformers.
    Comparable sales: 6.4%
    		—6.4%——

    Operational metrics

    30
    Net sales
    $4.7Bup 1.8% YoY
    Q1 FY27

    Exceeded guidance of $4.575B-$4.625B. Excluding $40M impact from 14 non-go-forward store closures, net sales grew 2.7%.

    Comparable sales (reported basis)
    3%vs. guidance of 0.5%-1.5%
    Q1 FY27

    Strongest first quarter comparable sales results in 4 years.

    Total revenue
    $4.9Bup 2.1% YoY
    Q1 FY27

    Includes other revenue.

    Other revenue
    $210Mup 8% YoY
    Q1 FY27
    Credit card revenue
    $172Mup 12% YoY
    Q1 FY27

    Reflecting healthy credit portfolio and prudent management of net credit card losses.

    Macy's Media Network revenue
    $38Mdown 5% YoY
    Q1 FY27

    Reflecting timing of advertising spend on a year-over-year basis.

    Gross margin
    $1.8B38.9% of net sales vs 39.2% LY
    Q1 FY27
    SG&A rate
    39.9%flat YoY
    Q1 FY27

    Better than expectations despite higher sales.

    SG&A dollars
    $1.95Bvs $1.91B LY
    Q1 FY27

    In line with expectations despite higher sales, reflects investments in Bold New Chapter initiatives partially offset by expense savings.

    Adjusted diluted EPS
    $0.13above high end of guidance range ($0.01 loss to $0.01 gain)
    Q1 FY27
    Inventory dollars
    up 3.6%YoY
    Q1 FY27 end

    In line with expectations and comp sales growth; lower aged inventories relative to last year.

    Capital expenditures
    $177Mflat YoY
    Q1 FY27
    Monetization proceeds
    $25Mvs $38M LY
    Q1 FY27
    Share repurchases
    $50M
    Q1 FY27
    Quarterly cash dividend
    $50M
    Q1 FY27
    Share buyback authorization remaining
    $1.1B
    Q1 FY27 end
    Cash balance
    $1.3Bvs $932M LY
    Q1 FY27 end
    Store closures impact on net sales
    $40M
    Q1 FY27

    Impact from 14 non-go-forward store closures at end of last year.

    Store closures impact on net sales
    $145M
    FY27

    Fiscal 2025 store closures contributed to net sales in the comparable period.

    Fuel costs headwind
    10-20 bps
    FY27

    Full year headwind to gross margin.

    Fuel costs impact on EPS
    $0.05-$0.15
    FY27

    Up to $0.15.

    Tariff and fuel costs impact on Q2 EPS
    $0.03-$0.04
    Q2 FY27

    Negative impact.

    Tariff and fuel costs impact on Q2 gross margin
    20-40 bps
    Q2 FY27

    Negative impact.

    Tariff and fuel costs impact on FY EPS
    $0.10-$0.20
    FY27

    Combined negative impact.

    Tariff and fuel costs impact on FY gross margin
    20-30 bps
    FY27

    Negative impact.

    Reimagine locations
    200
    Q1 FY27

    Expanded by 75 locations, representing nearly 60% of go-forward Macy's stores and 75% of fiscal 2025 go-forward Macy's store sales.

    AI tests and pilots
    35
    current

    Running across the business.

    AUR growth (Macy's brand)
    5% and changeYoY
    Q1 FY27
    AUR growth (Bloomingdale's brand)
    9-10%YoY
    Q1 FY27
    AUR growth (total)
    8.3%YoY
    Q1 FY27

    Significant acceleration from prior quarter.

    Industry KPIs

    3
    MetricValueDetails
    Fintech consumer credit book$172MUSD
    Advertising revenue take rate$38MUSD
    Operating income EBIT and adjusted EBITDA$290MUSD

    Product announcements

    1
    ProductTypeDetails
    Ask Macy'slaunch

    Deals & partnerships

    1
    Live Nation and Major League BaseballPartnership

    Designed to help customers celebrate the summer, powering fan-first experiences from moment before inspiration and in-venue surprises, celebration nights, sweepstakes and rewards across amphitheaters and stadiums nationwide.

    Risks & headwinds

    4
    Softer trends in big-ticket home (furniture)Q1 FY27

    Unquantified, but noted as "softer trends"

    Mitigation: Working hard to change the trajectory

    Softer trends in plus-size businessQ1 FY27, "for some time"

    Unquantified, but noted as "softer trends"

    Mitigation: Team is busy at work trying to improve the quality of our assortments and make sure we have the right representation for the plus size customer.

    Macroeconomic and geopolitical uncertaintyOngoing

    Unquantified

    Mitigation: Guidance provides flexibility to respond to potential changes in the competitive landscape and consumer demand.

    Tariffs and fuel costsQ2 FY27, Full Year FY27

    $0.03 to $0.04 negative impact to EPS and a 20- to 40-basis-point negative impact to gross margin for Q2. $0.10 to $0.20 combined tariff rate and fuel cost impact for FY.

    Mitigation: Estimated impact of lower tariffs and higher fuel costs is net neutral for the fiscal year. Will continue to closely monitor developments.

    Q&A highlights

    6

    Asked about recent comp trends, drivers of Q2 upside, and confidence in H2 positive comps given macro factors.

    Management noted consistent performance throughout Q1 with no monthly vagaries and broad category strength. They are pleased with Q2 performance to date and raised full-year guidance, including H2, while maintaining a prudent approach due to macro uncertainties. They aim for continued execution and good inventory levels.

    “We obviously have a prudent guide relative to the geopolitical and macroeconomic factors. But the things that are within our control, we feel really good about.”

    asked by Blake Anderson · answered by Antony Spring

    2 min read7 chapters

    Detailed Narrative

    01

    Bold New Chapter Strategy Progress

    The company's "Bold New Chapter" initiatives are gaining momentum, driving enterprise-wide growth and better-than-expected performance. This strategy focuses on strengthening Macy's, accelerating luxury brands (Bloomingdale's, Bluemercury), and simplifying operations. The Reimagine locations, now 200 stores, continue to outperform, delivering positive comparable sales in 8 of the last 9 quarters.

    02

    Digital and AI Innovation

    Digital channels contributed positively to comparable sales, supported by foundational platform improvements. The introduction of "Ask Macy's," an AI-powered conversational shopping assistant, aims to enhance the customer journey and has shown favorable initial response. The company is running 35 AI tests and pilots across customer-facing, associate effectiveness, and supply chain functions.

    03

    Merchandise and Brand Strategy

    Macy's is optimizing its merchandise strategy, modernizing assortments, and improving curation across best, better, and good price points. New brands like Rotie's, Donna Karan Weekend, and Ted Baker Men's were introduced, alongside expanded distribution for others. Bloomingdale's continues to elevate its matrix with new luxury brands like Chloe Ready-to-Wear and Isabel Maran.

    04

    Luxury Segment Outperformance

    Bloomingdale's achieved a 10.2% comparable sales increase, its highest first-quarter sales in 154 years, driven by strong growth in ready-to-wear, men's apparel, fine jewelry, shoes, and tabletop. Bluemercury's comparable sales accelerated to 6.4%, with strong performance in makeup, dermatological skincare, and fragrances, particularly from new and remodeled stores.

    05

    Consumer Resilience and Engagement

    The predominantly middle to upper-income Macy's, Inc. customer remained resilient, responding positively to differentiated products and experiences. Key events like the Macy's Flower Show, drawing 800,000 customers, and upcoming celebrations like the 50th Fourth of July fireworks and 100th Thanksgiving Day Parade, are designed to drive traffic and engagement.

    06

    Operational Modernization and Efficiency

    The company is making progress in modernizing operations, including the China growth distribution facility which is ramping up and showing early benefits in service levels and cost efficiencies. Investments in AI are evaluating inventory forecasting and management to improve customer needs fulfillment and overall efficiency.

    07

    Balance Sheet and Capital Allocation

    Macy's maintains a strong financial position with $1.3 billion cash on hand and no debt maturities until 2030. The company returned $100 million to shareholders in Q1 through dividends and share repurchases, with $1.1 billion remaining on its buyback authorization. Operating cash flow significantly improved to an inflow of $292 million.

    AI-generated summary of the company’s earnings call. Not investment advice.