A department-store chain running hundreds of stores and online shops under three brands: Macy's for mid-to-higher-income shoppers, upscale Bloomingdale's, and premium beauty-and-spa Bluemercury. Founded in New York in 1858 by Rowland Hussey Macy, its red-star logo came from a tattoo the young Quaker sailor got aboard a whaling ship. It also lends its name to the Thanksgiving Day Parade, which began in 1924.
Macy's comparable sales rose 3.0% in Q1, the third straight quarter of growth, as all three nameplates expanded.
Macy's rose 3.0%, the third consecutive quarter of growth and the strongest in over two years. Total increased 2.1% to $4.9 billion and rose 65.8% to $63 million, driven by a 10.2% increase at Bloomingdale's and a $328 million cash inflow from credit card litigation settlements. The core Macy's brand is growing again, but tariffs are now a persistent cost.
Key takeaways
rose 3.0% enterprise-wide, with Bloomingdale's up 10.2%, Bluemercury up 6.4%, and the Macy's nameplate up 1.6%; the 200 reimagined Macy's locations outperformed with a 2.4% increase.
Total increased 2.1% to $4,892 million, as growth more than offset the revenue lost from the closure of 64 non-go-forward Macy's locations.
contracted 30 to 38.9%, which management attributed entirely to an approximate 30-basis-point impact from products bought under elevated China tariffs; excluding tariffs, the rate would have been roughly flat.
Section summaries
Management's Discussion and Analysis
Macy's Q1 FY2026 total revenue rose 2.1% to $4.9B, with comparable sales up 3.0% driven by all three nameplates, while gross margin dipped 30 bps on tariffs.
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Total increased 2.1% to $4,892 million, with net sales up 1.8% to $4,682 million, driven by growth at Macy's, Bloomingdale's, and Bluemercury.
rose 19.1% to $112 million, but the increase was aided by a $328 million cash receipt from credit card interchange fee litigation settlements that flowed through other ; without it, operating income would have declined.
swung to a $292 million inflow from a $64 million outflow a year ago, driven by the litigation settlement proceeds, and turned positive at $204 million after a $164 million use in the prior-year quarter.
The company repurchased 2.6 million shares for $49 million and paid $50 million in dividends, ending the quarter with $1,294 million in cash and $1,958 million in ABL borrowing availability.
What changed
The Macy's nameplate growth accelerated to 1.6% from 0.4% in Q2 2025 and 1.4% in Q3 2025, suggesting the go-forward business is gaining traction after the 0.6% full-year increase in FY2025.
The 30-basis-point tariff drag on was smaller than the 50-basis-point impact reported in Q3 2025 and the 80-basis-point contraction in Q2 2025, indicating mitigation efforts may be partially offsetting the tariff .
The $328 million interchange fee litigation settlement that boosted FY2025 continued to affect results in Q1 2026 as a cash inflow, but the underlying operating profitability—with at just 2.3%—remains thin without it.
Bloomingdale's growth accelerated to 10.2% from 8.8% in Q3 2025 and 7.4% for all of FY2025, while Bluemercury's growth rebounded to 6.4% from 1.1% in Q3 2025, reversing the deceleration flagged in prior quarters.
What to watch
Whether the Macy's nameplate can sustain growth above 1.5% now that the non-go-forward locations are largely closed and the remaining base is the entire story.
Whether the 30-basis-point tariff drag on expands in Q2 as more bought under elevated China tariffs flows through cost of goods sold, or whether mitigation efforts continue to contain it.
Whether can remain positive without the benefit of litigation settlement gains, given that was just 2.3% in Q1 and the settlement proceeds will not repeat.
Whether Bloomingdale's 10.2% growth represents a sustainable acceleration or a one-quarter event tied to easy comparisons or specific product categories.
rose 3.0% enterprise-wide, with Bloomingdale's up 10.2%, Bluemercury up 6.4%, and Macy's up 1.6%, while the 200 reimagined Macy's locations outperformed with a 2.4% increase.
declined 30 to 38.9%, entirely due to an approximately 30-basis-point tariff impact; excluding tariffs, the rate would have been roughly flat.
grew 2.0% to $1,952 million, reflecting continued investment in the go-forward business including reimagined stores and Bloomingdale's, partially offset by cost containment.
swung to a $292 million inflow from a $64 million outflow a year ago, primarily due to $328 million received from credit card interchange fee litigation settlements.
The company repurchased 2.6 million shares for approximately $49 million and paid $50 million in dividends, ending the quarter with $1,294 million in cash and $1,958 million in ABL borrowing availability.
Quantitative and Qualitative Disclosures About Market Risk
There have been no material changes to the Company's market risk as described in the Company's 2025 10-K. For a discussion of the Company's exposure to market risk, refer to the Company's market risk disclosures set forth in Part II, Item 7A, "Quantitative and Qualitative Disclo…
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There have been no material changes to the Company's market risk as described in the Company's 2025 10-K. For a discussion of the Company's exposure to market risk, refer to the Company's market risk disclosures set forth in Part II, Item 7A, "Quantitative and Qualitative Disclosures About Market Risk" of the 2025 10-K.
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MACY'S, INC.
The Company and its subsidiaries are involved in various proceedings that are incidental to the normal course of their businesses. As of the date of this report, the Company does not expect that any of such proceedings will have a material adverse effect on the Company’s financi…
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The Company and its subsidiaries are involved in various proceedings that are incidental to the normal course of their businesses. As of the date of this report, the Company does not expect that any of such proceedings will have a material adverse effect on the Company’s financial position or results of operations.