NEW YORK, March 18, 2026, 19:42 EDT
Macy’s shares jumped 4.8% to $17.72 on Wednesday, buoyed by better-than-expected fourth-quarter results and a 1.8% increase in comparable sales—a measure tracking established stores and online business. AP News
The rally stands out as Macy’s tries to show its turnaround is still picking up speed, even as it approaches this year with some caution. Leadership pointed to macroeconomic and geopolitical risks that could shape discretionary buying, and projected 2026 net sales between $21.4 billion and $21.65 billion, with adjusted EPS expected in the $1.90 to $2.10 range. Macy’s, Inc.
Macy’s posted net sales of $7.6 billion for the quarter ended Jan. 31, marking a 1.8% uptick on a comparable basis. Its “go-forward” operations—meaning the stores it’s hanging onto, along with digital—delivered a 2.0% gain in comparable sales. The company attributed roughly $200 million in lost fourth-quarter sales to the closure of 64 stores late in fiscal 2024. Q4 Investor Relations
Bloomingdale’s carried the load this quarter, with comparable sales jumping 9.9%. Bluemercury eked out a 1.3% gain, while Macy’s namesake stores edged up just 0.4% on a comparable basis—even as net sales at the flagship chain slipped 3.2%. Q4 Investor Relations
Macy’s CEO Tony Spring said in the earnings release that the retailer is bringing in “more relevant brands,” adding that Bloomingdale’s is proving it can meet demand in both premium and luxury segments. This year, the company plans to put 75 more locations through its remodeling program, called Reimagine 200. Macy’s, Inc.
Shares moved higher even as Macy’s flagged concerns over profitability. The company pointed to tariffs as a particular drag on the first quarter, and according to Reuters, CFO Tom Edwards told analysts earlier that existing duties were already baked into inventory costs. Macy’s projects a hit to gross margin for the year—somewhere between 0.20 and 0.30 percentage points, reflecting the slice of revenue remaining after merchandise expenses. Reuters
Macy’s moved higher, bucking the broader trend. Kohl’s slid 5.2%, Walmart shed 2.5%, and the S&P 500 consumer discretionary index closed down 2.32% as traders digested the Federal Reserve’s rate outlook alongside a spike in oil prices. Reuters
So investors zeroed in on what’s delivering. Macy’s posted a 1.5% gain in company-wide comparable sales for fiscal 2025, put up $1.4 billion in operating cash flow, and sent $448 million back to shareholders. Q4 Investor Relations
But Macy’s stock recovery leaves the bigger question mark hanging over its main business. Dana Telsey at Telsey Advisory Group noted, “Rightsizing the store base should improve long-term profitability.” According to Reuters, Telsey analysts pointed to sluggish traffic, tariff uncertainty, and a highly promotional market as immediate headwinds. Bloomberg.com
Spring didn’t sugarcoat things in a chat with the Associated Press, saying there’s “more unknown than there is known” as Macy’s tries to wrap its head around tariffs, shipping expenses, and the Iran situation. Macy’s itself called its 2026 guidance a “prudent approach.” AP News
