Macy’s (M) Q1 2027 earnings summary

Executive summary

• Achieved 3.0% comparable sales growth, the strongest first quarter in four years, with all nameplates and channels positive and Bloomingdale's posting record sales.

• Macy's delivered its fourth consecutive quarter of positive comparable sales, led by Reimagine 200 locations.

• Digital sales accounted for 34% of net sales, up from 33% in Q1 2025.

• GAAP diluted EPS was $0.23; Adjusted diluted EPS was $0.13, both above guidance.

• Raised full-year outlook based on strong Q1 results and continued momentum.

Financial highlights

• Net sales grew 1.8% year-over-year to $4.7 billion; total revenue reached $4.89 billion.

• Gross margin rate was 38.9%, down 30 basis points due to tariffs; flat year-over-year excluding tariffs.

• SG&A expenses were $1.95 billion, flat at 39.9% of revenue.

• Adjusted EBITDA was $290 million (5.9% of revenue), above guidance but down from $304 million last year.

• Operating cash inflow was $292 million vs. outflow of $64 million last year; free cash flow $140 million vs. outflow of $203 million.

Outlook and guidance

• Raised full-year 2026 net sales guidance to $21.5–$21.75 billion; comparable sales growth forecast at 0.5% to 1.2%.

• Adjusted EBITDA margin expected at 7.7%–7.9%; adjusted diluted EPS $2.00–$2.20.

• Q2 net sales expected at $4.75B–$4.8B; comps flat to up 1%; adjusted EPS $0.29–$0.34.

• Guidance reflects ongoing investments in Reimagine 200 and luxury nameplates, and assumes higher tariff impact in H1.

• Guidance incorporates flexibility for macroeconomic and geopolitical uncertainties.