Macy's raises annual outlook after the fourth straight quarter of sales gains

Business

Macy's raises annual outlook after the fourth straight quarter of sales gains

2026-06-03 20:07 Last Updated At：20:10

NEW YORK (AP) — Macy's reported its fourth consecutive quarter of comparable sales gains as the department store said an overhaul of its merchandise and better customer service is resonating with customers.

The New York company raised its outlook Wednesday and shares rose more than 3% before the opening bell.

“We're off to a strong start to the year, ” said CEO Tony Spring, who is in the third year of an attempted turnaround of the storied retailer. “We're operating with discipline and focusing on what matters most — our customers.”

Comparable sales — sales at established online channels and stores— rose 3% during the first quarter. That was higher than the 1.8% gain during the final quarter of 2025 and it was the strongest first quarter for such sales in four years, the retailer said. Macy's stores posted a comparable sales increase of 1.6%, while the company's Bloomingdale's stores delivered a 10.2% increase, its highest first-quarter sales volume on record. Bluemercury, the cosmetics chain also owned by Macy's had a 6.4% comparable sales gain.

It’s the latest encouraging sign for Macy’s, which had been mired in a yearslong sales slump. Under Spring, who took over the top job in early 2024, Macy’s has closed unprofitable stores and spent millions modernize others. The company has beefed up customer service. It’s also been trying to differentiate its luxury business from its rivals with exclusive merchandise.

Some of the outsized performance at Bloomingdales has been attributed by retail analysts to the Chapter 11 bankruptcy of Saks Global, the parent company of Saks Fifth Avenue and Neiman Marcus.

Still, Macy’s is contending with the same challenges faced by its the retailer sector as a whole.

U.S. retailers have spent months navigating an uncertain economic environment, from President Donald Trump’s tariffs to the impact of soaring gasoline prices due to the Iran war. The average price for a gallon of regular gasoline has been above $4 per gallon since March, according to according to AAA. A gallon costs 40% more than than it did before the war. The latest batch of earnings reports from major retailers underscore how shoppers are under increasing financial strain as they try to factor in higher prices for gasoline, groceries, utilities and almost everything else.

Spring told The Associated Press in a phone call Wednesday that the company is closely monitoring events given the uncertainty about the U.S. economy, but there's been no noticeable pullback in customer spending since gas prices started rising.

He reasons that Macy's improved assortment and perceived value are landing with customers. There have been strong sales in prom dresses, men's shoes, dresses and fragrances. Spring, however, noted disappointing furniture sales with shoppers continuing to put off purchases of big ticket items.

“Despite the choiceful consumer, despite all the things that are going on that we read about every day in terms of the geopolitical, macroeconomic environment, fashion and newness and the consumer’s desire to indulge is still happening,” Spring told The AP. “And we’re very pleased that we are taking share.”

Spring said that higher income shoppers continue to spend freely, boosted by gains in the stock market, while the middle income shopper has remained more selective. He said the lower income customers continue to struggle but are focusing on Macy's designated areas for heavily discounted merchandise.

Macy’s reported net income of $63 million, or 23 cents per share, in the quarter ended May 2. Adjusted earnings per share was 13 cents, a dime better than Wall Street had expected, according to FactSet.

That compares with a $38 million profit, or 13 cents per share, in the year-ago period.

Net sales rose to $4.68 billion from $4.6 billion in the year-ago period. Revenue this quarter also edged out projections on Wall Street.

The company now expects annual net sales of between $21.5 billion and $21.75 billion, up from previous guidance of $21.4 billion to $21.65 billion in March. Macy’s upped its projections for comparable sales, saying on Wednesday that they will likely increase between 0.5% and 1.2%. The company in March predicted a decline of 0.5% to a gain of 0.5%.

It also now anticipates earnings per share for the year to be in the range of $2 to $2.20, up from its previous guidance of $1.90 to $2.10 per share.

For the full fiscal year, analysts were expecting $2.09 per share on revenue of $21.6 billion, according to FactSet analysts.

Exit polls suggest landslide win by South Korea's ruling liberal party in local elections

SEOUL, South Korea (AP) — Exit polls suggested that South Korea's ruling liberal party was projected to win a landslide victory in Wednesday's mayoral and other local elections, a result that if confirmed would give President Lee Jae Myung a firmer political mandate to advance his agenda.

A victory by Lee's Democratic Party had been widely expected because its main rival, the conservative People Power Party, remains in disarray after President Yoon Suk Yeol was removed from office and sentenced to life in prison over his martial law debacle in late 2024.

The joint exit polls by South Korea’s three major TV stations — KBS, MBC and SBS — showed the Democratic Party was forecast to win at least 11 of the 16 mayoral and provincial gubernatorial posts up for grabs in Wednesday's elections. The polls suggested the PPP had a clear lead in only one race, while the other four races were too close to call.

“The conservatives’ support base has been fractured and weakened in the wake of Yoon’s impeachment, while the liberals’ support base has grown stronger," said Jeong Han-Wool, director of the Korean People Research Institute. “A win by the ruling party would help provide the Lee government with a considerably stable political foundation."

Thursday will mark one year in office for Lee, who won a snap election triggered after Yoon's ouster. Lee's approval ratings still hover over 60%. He's been credited with what he calls “pragmatic diplomacy” that eased concerns that his rule would hurt ties with the U.S. and Japan. His popularity has also been attributed to a booming stock market and efforts to be more transparent about his decision-making procedures.

Whatever the outcome of Wednesday’s election, Lee’s foreign policy agenda will likely remain unchanged. The Democratic Party would also maintain its majority status at parliament, though 14 new members of the 300-member National Assembly will be chosen in by-elections on Wednesday.

With more allies at mayoral and gubernatorial posts, Lee could pursue his regional policies more easily and effectively, given 14 of the 16 regional leadership posts are currently held by the PPP, said Choi Jin, director of the Seoul-based Institute of Presidential Leadership.

That will help his party's preparations for the 2028 parliamentary elections, Choi said.

The Seoul mayoral election is considered the most important one. Without winning it, experts said the Democratic Party couldn't claim an outright victory in overall elections, no matter how many races it won.

The race pits the Democratic Party’s Chong Won-o, a former Seoul district head who rose after Lee publicly praised his governance last October, against current mayor and political heavyweight Oh Se-hoon with the PPP.

The exit polls showed Chong running ahead of Oh by 5.4 percentage points.

On Tuesday, Oh accused Chong of relying on “the president’s coattails,” while Chong slammed Oh over what he called the mayor’s incompetent and irresponsible governance style.

The PPP is still struggling with internal feuding between reformists who joined the Democratic Party-led push to impeach Yoon and his loyalists who attempted to protect the embattled leader.

Among the candidates running for the parliamentary by-elections is Han Dong-hoon, leader of the reformist faction who was eventually expelled from the PPP. Pre-election surveys show Han, now an independent, holding a slim lead over the Democratic Party’s Ha Jung-woo, a former Lee adviser on artificial intelligence, in a race in Busan, the country’s second biggest city.

Jeong, the institute director, said that a Han victory could help anti-Yoon reformists regroup and emerge as a new force among the struggling conservatives in South Korea. But Choi said Han’s win could worsen a divide in the conservatives because Yoon loyalists would feel a sense of crisis and close ranks further.