Macy's (M) Posts Solid First-Quarter Results and Raises Full-Year Outlook
Key Takeaways
- Macy's reported first quarter 2026 net sales of $4.68 billion, exceeding analyst expectations of approximately $4.61 billion.
- Adjusted earnings per share came in at 13 cents, surpassing the consensus estimate of 2 cents.
- Reported net income rose to $63 million, or 23 cents per share, compared with $38 million, or 13 cents per share, a year earlier.
- The company raised its full-year 2026 net sales guidance to a range of $21.5 billion to $21.75 billion.
- Adjusted full-year earnings per share guidance was increased to $2.00 to $2.20 from the prior $1.90 to $2.10 range.
- Comparable sales showed the strongest first-quarter performance in four years, signaling continued turnaround progress.
Earnings Context and Why It Matters
Macy's fiscal year ends on January 31, so the first quarter covers February through early May. These latest results represent the first earnings release under the company's updated outlook following fiscal 2025. Investors pay close attention to these reports for signs of stabilization in department store retail, especially amid shifting consumer spending and competition from e-commerce. Stronger-than-expected sales and raised guidance could influence sentiment toward the broader retail sector as it heads into the back-to-school and holiday seasons.
The Quarter's Reported Numbers
For the quarter ended May 2, 2026, M posted net sales of $4.68 billion, up from the prior-year period and above consensus forecasts. Adjusted earnings per share reached 13 cents, well ahead of the 2-cent consensus estimate. Reported net income totaled $63 million, or 23 cents per share. The company also raised its full-year 2026 net sales outlook to $21.5 billion to $21.75 billion and lifted adjusted earnings per share guidance to $2.00 to $2.20. These figures reflect year-over-year improvement and beat analyst projections on both the top and bottom lines.
Market Reaction and Investor Sentiment
Shares of M reacted positively following the June 3, 2026, release, reflecting investor approval of the sales beat and raised outlook. The results highlighted the strongest first-quarter comparable sales growth in four years, boosting confidence in the company's turnaround strategy. Market participants focused on the guidance increase as a signal of sustained momentum, though broader retail sector volatility remains a factor influencing sentiment.
Forward Outlook and Key Factors to Monitor
With guidance now raised, investors will watch for continued execution on Macy's turnaround initiatives, including store optimization and brand positioning. Cost management and margin trends will remain important as the company navigates potential shifts in consumer demand.
Upcoming catalysts include updates on comparable sales trends and any further refinements to full-year expectations. Industry dynamics such as promotional activity levels and supply chain costs could also influence results in subsequent quarters.
Management commentary on holiday season preparations and digital sales growth will provide additional insight into the second half of fiscal 2026. I also checked this using Tickeron’s AI Screener to see how M compares to others in the industry.
Using Tickeron AI Tools in My Research Process
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M in upward trend: price may jump up because it broke its lower Bollinger Band on September 09, 2026
M may jump back above the lower band and head toward the middle band. Traders may consider buying the stock or exploring call options. In 27 of 35 cases where M's price broke its lower Bollinger Band, its price rose further in the following month. The odds of a continued upward trend are 77%.
Technical Analysis (Indicators)
Bullish Trend Analysis
The RSI Oscillator points to a transition from a downward trend to an upward trend -- in cases where M's RSI Oscillator exited the oversold zone, 15 of 22 resulted in an increase in price. Tickeron's analysis proposes that the odds of a continued upward trend are 68%.
The Moving Average Convergence Divergence (MACD) for M just turned positive on September 15, 2026. Looking at past instances where M's MACD turned positive, the stock continued to rise in 37 of 50 cases over the following month. The odds of a continued upward trend are 74%.
Following a +2.78% 3-day Advance, the price is estimated to grow further. Considering data from situations where M advanced for three days, in 208 of 279 cases, the price rose further within the following month. The odds of a continued upward trend are 75%.
Bearish Trend Analysis
The Stochastic Oscillator may be shifting from an upward trend to a downward trend. In 51 of 64 cases where M's Stochastic Oscillator exited the overbought zone, the price fell further within the following month. The odds of a continued downward trend are 80%.
The Momentum Indicator moved below the 0 level on October 06, 2026. You may want to consider selling the stock, shorting the stock, or exploring put options on M as a result. In 69 of 87 cases where the Momentum Indicator fell below 0, the stock fell further within the subsequent month. The odds of a continued downward trend are 79%.
M moved below its 50-day moving average on September 30, 2026 date and that indicates a change from an upward trend to a downward trend.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where M declined for three days, the price rose further in 50 of 62 cases within the following month. The odds of a continued downward trend are 76%.
The Aroon Indicator for M entered a downward trend on September 21, 2026. This could indicate a strong downward move is ahead for the stock. Traders may want to consider selling the stock or buying put options.
Fundamental Analysis (Ratings)
The Tickeron Price Growth Rating for this company is 44 (best 1 - 100 worst), indicating steady price growth. M’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron SMR rating for this company is 54 (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron PE Growth Rating for this company is 59 (best 1 - 100 worst), pointing to consistent earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Valuation Rating of 68 (best 1 - 100 worst) indicates that the company is slightly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (1.220) is normal, around the industry mean (2.246). P/E Ratio (8.429) is within average values for comparable stocks, (10.619). Projected Growth (PEG Ratio) (2.624) is also within normal values, averaging (1.329). Dividend Yield (0.033) settles around the average of (0.020) among similar stocks. P/S Ratio (0.262) is also within normal values, averaging (19.276).
The Tickeron Profit vs. Risk Rating rating for this company is 83 (best 1 - 100 worst), indicating that the returns do not compensate for the risks. M’s unstable profits reported over time resulted in significant Drawdowns within these last five years. A stable profit reduces stock drawdown and volatility. The average Profit vs. Risk Rating rating for the industry is 79, placing this stock worse than average.
The Tickeron Seasonality Score of 95 (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
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General Information
an operator of department stores
Industry DepartmentStores
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