Macy’s posts better-than-expected sales with focus on top stores

Macy’s Inc. posted better-than-expected quarterly results — a sign the department-store operator’s strategy of focusing on its best-performing locations is starting to pay off despite weakening consumer sentiment and tariff volatility.

Comparable-store sales in the fiscal quarter ended May 3 fell less than analysts had anticipated, the company reported on Wednesday, while revenue of $4.6 billion in the period also surpassed the average estimate.

The stock rose 3.4% at 7:13 a.m. in early New York trading. Macy’s shares have declined 29% this year through Tuesday’s close, and the stock has posted annual declines every year since 2021.

Macy’s maintained its sales outlook for the current year, expressing confidence in the goals despite new tariffs on imports, some moderation in consumer discretionary spending and a rise in promotions among competing retailers.

The company said its range of merchandise — from off-price to luxury — gives it additional flexibility. It scaled back its full-year view for profitability, excluding items such as interest and taxes, a measure known as EBITDA margin.

While comparable sales fell overall, they rose at Bloomingdale’s and Bluemercury, the company’s higher-end chains.

Retailers’ outlooks for the year have varied widely as rapid shifts in U.S. trade policy make it more complicated for companies to make projections. Home Depot Inc. and Walmart Inc. have maintained steady annual guidance, while Target Corp. has trimmed its outlook. American Eagle Outfitters Inc. pulled its guidance, citing discounting and an inventory write-down.

Chains selling staples are doing better than those offering discretionary goods as consumers trim their spending following years of price increases.

Chief Executive Officer Tony Spring, who took over in early 2024, prioritized shuttering struggling Macy’s locations while focusing on the 125 namesake stores the retailer says have the most potential. Macy’s is boosting staffing and revamping product displays at those locations, among other initiatives.

The U.S. department store landscape has shifted dramatically in the last decade as shoppers buy more online and luxury brands increasingly sell directly to consumers. Last year, Nordstrom announced plans to go private in a bid to remake itself outside the glare of public markets, while Saks Fifth Avenue, which acquired Neiman Marcus Group, has struggled to keep up with vendor payments.