Berkshire Hathaway's Abel Invests in Macy's Amid Strong Q1 Performance
Written by Emily J. Thompson, Senior Investment Analyst
Updated: May 27 2026
0mins
Source: Fool
Macy's Inc. shares fell 5.59% as the stock crossed below its 5-day SMA, reflecting a challenging trading session.
Despite the decline, Macy's reported a 3% year-over-year increase in comparable sales for Q1 2026, with Bloomingdale's achieving a remarkable 10.2% growth. Additionally, Berkshire Hathaway's new CEO, Greg Abel, made his first investment in Macy's, indicating confidence in the retailer's potential despite its low P/E ratio of 10. This strategic move may attract long-term investors looking for value in the stock.
The strong sales performance and the backing from a major investor like Berkshire Hathaway could provide a foundation for Macy's recovery, even as the stock experiences short-term volatility.
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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.
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- Upgraded Outlook: Macy's has raised its annual same-store sales guidance from a range of -0.5% to 0.5% to 0.5% to 1.2%, reflecting management's confidence in future performance and potentially attracting more investor interest in the stock's value opportunity.
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- Store Adjustments: During the bankruptcy process, Saks closed numerous locations, particularly off-price outlets, resulting in a substantial reduction in the number of Saks Off 5th stores, reflecting the company's focus on profitability over sheer store count.
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