M Stock Beat Q1 Ratings, Raises Full-Year Outlook

Macy’s Inc. NYSE: M kicked off the first quarter of 2026 with better-than-expected performance across the board, providing further evidence that the retailer’s Bold New Chapter turnaround strategy is paying off.

The strong results also prompted department stores to raise their full-year outlook. Despite the good news, Wall Street’s reaction was muted, with stocks closing slightly higher following the report.

Q1 Beat Powered by Power Across Brands

Macy’s Q1 adjusted earnings came in at 13 cents per share, down from 16 cents a year ago but ahead of Wall Street expectations of 2 cents per share. Revenue of $4.89 billion was up 1.8% year over year, topping analyst estimates of $4.61 billion.

Macy’s Today

M

Macy’s

$23.07 +1.27 (+5.83%)

As of 06/4/2026 03:59 PM Eastern

This is the fair market value given by Massive. Read more.

52 week interval

$10.54

▼

$24.41

Dividend Yield

3.29%

The P/E ratio

9.53

Target Value

$20.30

Growth was broadly based across Macy’s portfolio. Performance at Bloomingdale’s was particularly strong, with comparable sales (comps) up 10.2% year over year, marking the best first quarter in the brand’s history. Comps at the Macy’s nameplate rose 1.6%, although the retailer’s rebranded stores, which account for about 60% of the store base, saw comps increase 2.4%. At Bluemercury, which sells luxury beauty brands, comps rose 6.4%.

“In the first quarter, we delivered growth across the business, better-than-expected performance across all key metrics, and our best comparable sales in four years with strong names and channels,” Chief Executive Tony Spring said on the earnings call.

He added, “These extensive operational and financial improvements demonstrate the strength and effectiveness of the Bold New Chapter strategy.”

Macy’s Raises Full-Year Outlook

Macy’s released guidance for the second quarter and raised its full-year outlook, citing better-than-expected first-quarter revenue and profit, and a slight increase in its sales expectations for the rest of the year.

For the second quarter, the company expects net sales of approximately $4.75 billion to $4.8 billion, with comparable sales ranging from approximately 1%. Adjusted earnings are expected to be between 29 cents and 34 cents per share.

For the full year, Macy’s now expects total sales of $21.5 billion to $21.75 billion, up from its previous forecast of $21.4 billion to $21.65 billion. Comparable sales are expected to rise 0.5% to 1.2%, compared with earlier guidance of a 0.5% decline to a 0.5% increase. Diluted adjusted earnings are now expected to be between $2 and $2.20 per share, up from a previous range of $1.90 to $2.10.

Macy’s said the revised outlook reflects revised pricing and fuel assumptions, which it expects will have a negative impact on results this year. The guide also provides flexibility to account for potential changes in the competitive environment, as well as ongoing macroeconomic and geopolitical uncertainty.

Wall Street Reaction Remains Muted

Despite a strong quarter and an optimistic outlook, Wall Street’s reaction was relatively muted following the report, with shares closing down 0.4% to $21.76.

Investors may be holding their breath after the stock’s strong performance over the past year. Buoyed by a series of better-than-expected earnings reports that have bolstered confidence in the company’s turnaround strategy, shares have gained nearly 90% over the past 12 months.

After reaching a 52-week intraday high above $24 in December, the stock pulled back during the first few months of 2026. Momentum appeared to return in March after Macy’s delivered stronger-than-expected fourth-quarter results, giving stocks a boost. However, the company’s outlook prompted some analysts to lower their estimates. Still, during the three months leading up to the Q1 release, the stock rose 19%.

Analysts Remain Cautious Despite Advances in Change

Despite signs that Macy’s turnaround strategy is working, Wall Street remains cautious on the stock. The consensus rating is Reduce, with two sell ratings, 11 hold ratings, and one buy rating. The average target price is around $19.90, about 15% below the current share price. The highest price target on Wall Street is $27, while the remaining targets range from $9 to $23.

The cautious stance may reflect concerns about whether Macy’s can maintain its momentum, as well as broader uncertainty surrounding consumer spending and the state of the macroeconomic environment.

Short Interest Rises As Some Investors Remain Skeptical

Short interest in the stock has also risen over the past few months. As of May 15, approximately 33.5 million shares, or 12.8% of the float, were short-sold. That’s up from about 21.1 million shares, or 8.2% of the float, on Jan. 15.

From a valuation perspective, Macy’s looks relatively cheap compared to the broader retail industry. The stock currently trades at 10X earnings, below the retail industry average of 11.3X. On a price-to-sales basis, shares trade at 0.27X compared to the industry average of 0.84X.

While Wall Street remains cautious, Macy’s latest quarter clearly highlighted continued progress in its turnaround efforts. Investors will be watching closely to see if the company can continue to build on that progress in the coming quarters.

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