Macy's Revamped Stores Drive 2.4% Comp Growth as Chain Beats Q1 Expectations

Macy’s Revamped Stores Drive 2.4% Comp Growth as Chain Beats Q1 Expectations

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6.4.2026

Quick Facts

Macy’s 200 revamped stores posted 2.4% comparable sales growth versus 1.6% for the overall chain
Q1 net sales rose 1.8% to $4.7 billion, beating analyst estimates by $100 million
Company raised full-year guidance after exceeding expectations for fifth consecutive quarter

Macy’s store renovation strategy delivered measurable results in Q1 2025, with the department store chain’s 200 upgraded locations driving stronger sales growth than the broader fleet.

The company reported Q1 net sales of $4.7 billion, up 1.8% year over year and beating analyst estimates of $4.6 billion. Overall comparable sales rose 3%, while the 200 revamped stores posted 2.4% comp growth compared to 1.6% for all Macy’s locations.

Macy’s beat earnings expectations with adjusted earnings per share of $0.13, well above analyst estimates of $0.04. The strong performance prompted the retailer to raise its full-year guidance, now projecting net sales between $21.5 billion and $21.75 billion, up from the previous range of $21.4 billion to $21.65 billion.

The success stems from Macy’s “First 50” initiative launched in early 2024, which expanded to 125 stores by February 2025. CEO Tony Spring said the company is in the “early innings” of turning around its namesake stores.

“We found that when the product and the experience are differentiated and compelling, engagement and spend increase,” Spring said. “Performance of both the First 50 and the 100 test stores illustrate that when we invest in the customer experience, we can grow sales.”

The store improvements include enhanced staffing in fitting rooms, shoe departments, and jewelry counters, plus expanded brand offerings like Donna Karan, French Connection, and Hugo Boss. Macy’s also added services like personal styling sessions, fashion shows, and fragrance bottle engraving.

The upgraded stores represent “a good geographic representation of the fleet and not just top-performing stores,” Spring noted, spanning locations in Florida, Virginia, and other states beyond major metropolitan areas.

The investment strategy runs parallel to Macy’s “Bold New Chapter” plan to close approximately 150 underproductive stores over three years while investing in 350 go-forward locations through fiscal 2026. The company plans to close 66 stores in 2025.

Macy’s luxury brands also posted strong results. Bloomingdale’s comparable sales rose 10.2% for its seventh consecutive quarter of growth, while Bluemercury posted 6.4% comp growth, marking its 18th straight quarter of increases.

The retailer plans to expand its higher-performing brands, opening 15 Bloomingdale’s stores and 30 Bluemercury locations over the next three years while remodeling about 30 existing Bluemercury stores.