Macy's Reports Strong Q1 Performance Amid Transformation
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jun 25 2026
0mins
Source: NASDAQ.COM
- Sales Growth: Macy's comparable sales increased by 3% year-over-year in Q1 2026, with Macy's up 1.6%, Bloomingdale's up 10.2%, and Bluemercury up 6.4%, indicating resilience in the market amid persistent inflation, particularly with Bloomingdale's achieving its best performance ever.
- Profitability Improvement: Adjusted earnings per share (EPS) reached $0.13, exceeding guidance and reflecting an 18.2% increase from last year, demonstrating enhanced operational efficiency during the company's transformation and boosting investor confidence.
- Strategic Investment Shift: Berkshire Hathaway's new CEO Greg Abel cut 16 small positions in his first quarter while increasing his stake in Macy's, signaling confidence in the retailer despite its low P/E ratio of 10, highlighting its undervalued potential.
- Dividend Appeal: Macy's current dividend yield stands at 3%, attracting passive income investors; although it was not included in the analyst team's top stock picks, its strong brand and market presence still offer long-term investment value.
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Analyst Views on M
Wall Street analysts forecast M stock price to fall
12 Analyst Rating
2 Buy
9 Hold
1 Sell
Hold
Current: 23.680
Low
8.00
Averages
21.33
High
27.00
Current: 23.680
Low
8.00
Averages
21.33
High
27.00
About M
Macy's, Inc. is an omnichannel retail company. The Company operates stores, websites and mobile applications under three brands, Macy's, Bloomingdale's and Bluemercury, which sell a range of merchandise, including apparel and accessories (men's, women's and kids'), cosmetics, home furnishings and other consumer goods. The Company has stores in 43 states, the District of Columbia, Puerto Rico and Guam. Its operations are conducted through Macy's, Macy's Backstage, Macy's small format, Bloomingdale's, Bloomingdale's The Outlet, Bloomie's, and Bluemercury. In addition, Bloomingdale's in Dubai, United Arab Emirates and Al Zahra, Kuwait are operated under a license agreement with Al Tayer Insignia. The principal private label brands offered by the Company include Alfani, And Now This, Aqua, Bar III, Cerulean 6, Charter Club, Club Room, Epic Threads, first impressions, Giani Bernini, Holiday Lane, Home Design, Hotel Collection, Hudson Park, Ideology, I-N-C, jenni, JM Collection, and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- New Investment Strategy: Abel's purchase of over 3 million shares of Macy's in Q1 marks Berkshire Hathaway's first investment in the retailer, indicating confidence in Macy's growth potential moving forward.
- Sales Growth Momentum: Macy's stock has surged 85.7% over the past year, with Q1 same-store sales up 3.1%, and notable growth of 10.2% and 6.4% for Bloomingdale's and Bluemercury respectively, suggesting the effectiveness of its 'Bold New Chapter' strategy.
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