Macy's, Inc., an omni-channel retail organization, operates stores, websites, and mobile applications in the United States. The company sells a range of merchandise, such as apparel and accessories for men, women, and kids; cosmetics; home furnishings; and other consumer goods under the Macy's, Bloomingdale's, and bluemercury brands. It also operates in Dubai, the United Arab Emirates, and Al Zahra, Kuwait under the license agreements. The company was formerly known as Federated Department Stores, Inc. and changed its name to Macy's, Inc. in June 2007. The company was founded in 1830 and is based in New York, New York.

У Macy’s оценка выглядит сдержанно привлекательной по мультипликаторам, но фундаментально картина остаётся неоднородной. P/E, P/S, P/B и P/FCF заметно ниже медианы отрасли, что обычно указывает на дисконт к сектору и ограничивает риск сильной переоценки вниз. При этом этот дисконт не полностью компенсирует слабость качества прибыли: EPS и прогнозный EPS существенно ниже отраслевых ориентиров, а чистая и операционная маржа также заметно отстают от медианы. Позитивом выглядит то, что ROI выше отрасли, ROE находится около медианы, а рентабельность на капитале в целом не выглядит разрушенной. Динамика маржинальности и прибыли по годам скорее улучшилась относительно более слабых кварталов, но уровень всё ещё остаётся скромным для устойчивого премиального мультипликатора. Ликвидность умеренная: current ratio около нормы, но quick ratio низкий, а cash on hand сократился по сравнению с более ранними периодами, что повышает чувствительность к сезонности и оборотному капиталу. Долговая нагрузка выглядит контролируемой: debt/equity ниже отрасли, long-term debt снизился, и это поддерживает финансовую устойчивость. С другой стороны, total liabilities остаются высокими, а снижение денежной подушки не позволяет считать баланс безрисковым. Выручка и валовая прибыль сохраняются на значимом уровне, а gross margin остаётся стабильной, что говорит о сохранении базовой операционной модели. Однако EBITDA и операционная маржа не демонстрируют достаточной силы, чтобы обосновать заметное повышение оценки. Отсутствие дивидендной доходности сейчас убирает один из традиционных факторов поддержки для инвестора. В сумме бумаги выглядят скорее как недорогой, но не особенно качественный ритейлер с ограниченным апсайдом и повышенной зависимостью от исполнения. Поэтому фундаментально целесообразна лишь умеренная отрицательная корректировка прогноза, а не резкое снижение или повышение.

Macy's Inc

Сильный индекс, незначительно упал. Быки в растерянности.

Strong index, slightly down. The bulls are confused.

Слабый индекс, без изменений

Сильный индекс, без изменений. Рынок на стороне быков.

Strong index, flat. The market is on the bulls' side.

Средний индекс, значительно упал. Рынок не поддерживает медведей.

Medium index, significantly down. The market does not support the bears.

Средний индекс, незначительно упал. Приток средств в лонги снизился, но остается положительным.

Medium index, slightly down. The inflow of funds into longs has decreased, but remains positive.

Сильный индекс, без изменений. Отток средств из шортов на высоком уровне.

Strong index, flat. Outflow of funds from shorts at a high level.

Macy’s торгуется с дисконтом к отрасли, но слабые EPS, маржа и ликвидность ограничивают потенциал переоценки, несмотря на контролируемый долг.

Key Points
Macy's stock is up about 85% over the past 12 months.
Berkshire Hathaway just added Macy's to its portfolio.
There are a handful of reasons the stock is moving higher, including store redesigns.
Malls and department stores are seen by many as fading relics of the past, but don't tell that to Macy's (NYSE: M).
The clothing retail store chain just had its best first quarter in years, and its stock price is up 85% over the past 12 months. It even caught the attention of Berkshire Hathaway (NYSE: BRKA) (NYSE: BRKB), which added its first-ever stake in Macy's in the first quarter.
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Revenue increased 2% in the quarter to $4.9 billion, while its comparable (or same-store) sales rose 3%. Macy's store comp sales were up 1.6%, but the company's Bloomingdale stores saw comp sales surge 10.2% while its beauty property, Blue Mercury, saw same-store sales jump 6.4%.
Net income rose 66% to $63 million while earnings per share increased 77% to $0.23 per share.
The retailer has now had two straight quarters of earnings growth after declining earnings for much of the previous three years. Here are three reasons why Macy's stock is headed in the right direction.
1. A bold new chapter
Much of the improvement stems from its Bold New Chapter initiative, launched two years ago. It focused on cutting costs by reducing the number of underperforming stores and focusing on a core group of 350 stores. That meant closing roughly 150 locations.
At the same time, the plan called for opening new locations of its luxury brands, Bloomingdale's and Blue Mercury, as both have been in high demand. We watched that play out in Q1 as these two brands saw comp sales surge.
The target was low single-digit sales growth, expenses rising by less than 2% to 3%, mid-single digit adjusted annual EBITDA growth, and free cash flow back to pre-pandemic levels. Macy's is hitting its sales and expense targets, and still progressing toward EBITDA and free-cash flow targets.
2. Reimagined stores
As part of the Bold New Chapter strategy, Macy's plans to reimagine 200 stores to improve the customer experience. Initially, the company planned to open 125 reimagined stores, but it has been so successful that management upped the number to 200.
The 200 reimagined Macy's locations posted comparable sales increases of 2.4%, higher than the 1.6% comp sales increase for Macy's overall in Q1.
The first quarter's success led Macy's to raise sales and earnings guidance for this fiscal year. The chain now expects $21.5 to $21.75 billion in net sales, up from the previous guidance of $21.4 to $21.65 billion. Further, comp sales are slated to increase 0.5% to 1.5% this fiscal year, up from the previous range of -0.5% to 0.5%.
In addition, adjusted earnings are targeted at $2.00 to $2.20 per share, up from a range of $1.90 to $2.10 per share.
3. A cheap stock price
The turnaround plan caught the attention of Berkshire Hathaway, and I'm certain Macy's low valuation was a major reason why Berkshire Hathaway opened a new position.
Macy's stock is trading at 9 times earnings and 10 times forward earnings, making it dirt cheap. Further, the price-to-sales ratio is just 0.27, so Macy's stock is extremely attractive from a valuation standpoint.
As an added bonus, Macy's stock offers a strong dividend yielding 3.45%.
Should you buy stock in Macy's right now?
Before you buy stock in Macy's, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Macy's wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $442,220!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,230,114!*
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*Stock Advisor returns as of June 12, 2026.
Dave Kovaleski has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Berkshire Hathaway. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Macy's Just Had Its Strongest Q1 in 4 Years. Here Are 3 Ways the Struggling Retailer Is Tackling Its Turnaround.

Key Points
He believes the shares have potential upside of more than 19%.
This comes several weeks after the company reported a blowout first quarter.
Well before market open on Tuesday, a global bank reiterated its bullish view on retailer TJX Companies (NYSE: TJX). Clearly taken by this assessment, investors pushed into the T.J. Maxx and Marshalls owner's equity, boosting it more than 3% higher across that day's trading session.
It remains a clear buy, says pundit
The analyst behind the update was UBS prognosticator Jay Sole, who maintained his buy recommendation and $197 per share price target on TJX. That's more than 19% above the stock's latest closing price.
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According to reports, Sole cited findings in the latest version of his bank's annual U.S. Off-Price and Department Store Retailers Consumer Survey as a core reason for his continued bullishness. He wrote that the survey indicated that 71% of polled consumers believe the company's flagship T.J. Maxx stores offer good value for money. That figure is well higher than the roughly 47% for Macy's and other prominent department stores.
The analyst also pointed to data indicating that customers frequenting T.J. Maxx anticipate a 14% net increase in shopping frequency over the next year. That compared very favorably to the -1% average of the overall survey. In Sole's view, traffic is the main driver of a discount retailer's comparable sales growth, a crucial metric in the retail industry.
The right retailer at the right time
TJX has posted some impressive results lately. Its "comps" rose by 6% year over year in its first quarter of fiscal 2027, and net sales advanced by a meaty 9% to more than $14 billion. Better, adjusted earnings per share soared by 29% to nearly $1.19, crushing the consensus analyst estimate. With these considerable tailwinds at its back, the company raised its comparable sales and EPS guidance for the full fiscal year.
The current economic uncertainty in the U.S. is generally favoring discount retailers, and TJX is proving very adept at navigating this moment. I'm becoming increasingly bullish on this company, and investors should too.
Should you buy stock in TJX Companies right now?
Before you buy stock in TJX Companies, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and TJX Companies wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $445,672!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,280,566!*
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*Stock Advisor returns as of June 9, 2026.
Eric Volkman has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends TJX Companies. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Why TJX Companies Stock Climbed While the Market Sputtered Today

Key Points
Berkshire Hathaway sold all its Amazon shares, which isn't too surprising on closer inspection.
The conglomerate invested in a well-known retailer whose prospects are improving.
Greg Abel took over from Warren Buffett as CEO of Berkshire Hathaway at the beginning of the year. His first quarter at the helm was eventful. Abel and his team closed several positions while buying shares in new companies. Some of his choices were not surprising. For instance, Apple remains Berkshire Hathaway's largest holding, which everyone expected. Another decision the conglomerate made that may seem odd at first but actually makes sense is the choice to get rid of Amazon (NASDAQ: AMZN).
Will AI create the world's first trillionaire? Our team just released a report on the one little-known company, called an "Indispensable Monopoly" providing the critical technology Nvidia and Intel both need. Continue »
Why Berkshire Hathaway dumped Amazon
Amazon is a leader in e-commerce and cloud computing. It provides exposure to several other markets. The company's revenue and earnings are growing at a good clip, and it has attractive long-term prospects across several niches in which it competes. Further, Amazon benefits from a wide moat from its brand name, network effects, and switching costs. All of these factors (and more) arguably make the stock an attractive long-term bet and one that, to some extent, aligns with the criteria prominent in the Buffett school of investing.
However, Amazon made up a small percentage of Berkshire Hathaway's portfolio. The conglomerate owned about 2.3 million shares as of the fourth quarter. That accounted for a tiny portion of Berkshire's massive $263 billion portfolio. Further, Abel and his team sold many of the stocks (including Amazon) managed by Todd Combs, who left the company in December to join JPMorgan. So, it wasn't a particularly shocking move. Let's look into one decision Abel made during the first quarter that seems like far more of a head-scratcher.
Berkshire buys a stake in a legacy retailer
Berkshire Hathaway bought about three million shares of Macy's (NYSE: M). At first glance, this looks like a dubious decision. Macy's has faced significant problems in recent years -- in fact, the last decade has not been kind to the retailer. The shift to e-commerce and the decline in mall and department store foot traffic have led to poor financial results. Meanwhile, Macy's has faced growing competition from a variety of sources, not just online stores. The company has struggled to grow revenue at a good clip for a long time, and the strongest top-line increase in recent years came after the pandemic, when customers who had been stuck at home finally had the opportunity to go out again.
In fairness, Macy's has made some progress. More recent financial results have been stronger amid a push to turn things around. The company notably decreased its retail footprint by closing many unprofitable stores and selling off real estate assets while making a push in e-commerce.
It's also admirable that Macy's has survived this long, especially as other legacy retailers weren't so lucky and have now gone out of business. However, can Macy's deliver strong returns from now on? Or is there another reason Abel and his team got in the game? Perhaps Berkshire Hathaway is attracted to Macy's real estate holdings because they may be more valuable than the market is giving the company credit for. It's in that sense that the retail giant may be "undervalued."
We could also look at traditional valuation metrics. Macy's is trading at 10.2x forward earnings, which is lower than the consumer discretionary average of 26.2. Macy's also appears undervalued by this standard, at least at first glance. It's also worth pointing out that in the first quarter of its fiscal year 2026, ending on May 2, Macy's net sales increased by 1.8% year over year to $4.7 billion, while comparable sales grew 3% year over year. The company's adjusted earnings per share climbed to $0.13, 18% higher than the year-ago period.
The company beat Wall Street estimates on the top and bottom lines. Macy's increased its guidance for its full fiscal year 2026 as well. Macy's is moving in the right direction. There is plenty of risk remaining here, and that's probably one reason why Berkshire Hathaway did not buy enough of the company's shares to make it anything close to a top holding in its portfolio. However, at current levels, Macy's might be worth a second look for contrarian value investors.
Should you buy stock in Macy's right now?
Before you buy stock in Macy's, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Macy's wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $439,632!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,316,532!*
Now, it’s worth noting Stock Advisor’s total average return is 959% — a market-crushing outperformance compared to 210% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors.
*Stock Advisor returns as of June 5, 2026.
JPMorgan Chase is an advertising partner of Motley Fool Money. Prosper Junior Bakiny has positions in Amazon and Berkshire Hathaway. The Motley Fool has positions in and recommends Amazon, Apple, Berkshire Hathaway, and JPMorgan Chase. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Warren Buffett's Successor, Greg Abel, Dumped Amazon and Bought 3 Million Shares of This Undervalued Stock

Among the underlying components of the Russell 3000 index, we saw noteworthy options trading volume today in Peabody Energy Corp (Symbol: BTU), where a total of 24,071 contracts have traded so far, representing approximately 2.4 million underlying shares. That amounts to about 61.6% of BTU's average daily trading volume over the past month of 3.9 million shares. Particularly high volume was seen for the $34 strike call option expiring June 05, 2026, with 4,061 contracts trading so far today, representing approximately 406,100 underlying shares of BTU. Below is a chart showing BTU's trailing twelve month trading history, with the $34 strike highlighted in orange:
Bank of America Corp (Symbol: BAC) saw options trading volume of 231,240 contracts, representing approximately 23.1 million underlying shares or approximately 60.9% of BAC's average daily trading volume over the past month, of 38.0 million shares. Especially high volume was seen for the $54 strike call option expiring June 05, 2026, with 23,120 contracts trading so far today, representing approximately 2.3 million underlying shares of BAC. Below is a chart showing BAC's trailing twelve month trading history, with the $54 strike highlighted in orange:
And Macy's Inc (Symbol: M) saw options trading volume of 41,192 contracts, representing approximately 4.1 million underlying shares or approximately 60.7% of M's average daily trading volume over the past month, of 6.8 million shares. Especially high volume was seen for the $23.50 strike call option expiring June 05, 2026, with 11,544 contracts trading so far today, representing approximately 1.2 million underlying shares of M. Below is a chart showing M's trailing twelve month trading history, with the $23.50 strike highlighted in orange:
For the various different available expirations for BTU options, BAC options, or M options, visit StockOptionsChannel.com.
Further BTU Research:
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Notable Thursday Option Activity: BTU, BAC, M

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Macy's (M) Q1 2026 Earnings Call Transcript

Shares of Macy's, Inc. (M) gained 0.6% after the company reported first-quarter 2026 earnings of $0.13 per share, beating the Zacks Consensus Estimate of $0.02 per share.
Medtronic plc’s (MDT) shares jumped 5.7% after the company reported fourth-quarter 2026 earnings of $1.55 per share, surpassing the Zacks Consensus Estimate of $1.54 per share.
Shares of Ollie's Bargain Outlet Holdings, Inc. (OLLI) rose 0.6% after the company reported first-quarter fiscal 2026 earnings of $0.91 per share, outpacing the Zacks Consensus Estimate of $0.87 per share.
Shares of Microsoft Corporation (MSFT) declined 3.2% on the broader tech decline.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Company News for Jun 4, 2026

Macy’s, Inc. M reported first-quarter fiscal 2026 results, wherein earnings and revenues surpassed the Zacks Consensus Estimate. Also, both metrics increased from the year-ago quarter.
The company delivered its strongest fiscal first-quarter comparable-sales performance in four years, supported by positive sales growth across all three nameplates — Macy’s, Bloomingdale’s and Bluemercury. Management highlighted that the company’s Bold New Chapter strategy continues to gain traction, driving broad-based operational and financial improvements.
Encouraged by the strong fiscal first-quarter performance and positive second-quarter trends, management raised its fiscal 2026 outlook for net sales, comparable sales and adjusted earnings per share, reflecting confidence in the momentum of its go-forward business.
Macy's, Inc. Price, Consensus and EPS Surprise
More on Macy’s Q1 Results
The company reported adjusted earnings of 13 cents per share, comfortably surpassing the Zacks Consensus Estimate of 2 cents and improving from adjusted earnings of 11 cents in the year-ago quarter. Earnings per share were 23 cents compared with 13 cents in the prior-year period.
Net sales of $4,682 million surpassed the Zacks Consensus Estimate of $4,623 million. The top line increased 1.8% year over year, benefiting from positive comparable sales across all three nameplates. Comparable sales rose 3%, marking the company’s strongest fiscal first-quarter comparable-sales performance in four years. We expected comparable sales to increase 1% in the quarter under review.
M’s go-forward business comps, including go-forward locations and digital platforms across Macy’s, Bloomingdale’s and Bluemercury, increased 3.1% on an owned-plus-licensed-plus-marketplace basis.
Net credit card revenues were $172 million, up 11.7% year over year, driven by the company’s healthy credit portfolio and prudent management of net credit card losses. The metric represented 3.7% of net sales compared with 3.3% in the year-ago quarter.
Macy’s Media Network revenues were $38 million, down 5% year over year, indicating the timing of advertising spending on a year-over-year basis. The metric represented 0.8% of net sales compared with 0.9% in the prior-year quarter.
Update on M’s Brand Performance
Comps across the Macy’s brand increased 1.6% year over year on an owned-plus-licensed-plus-marketplace basis. Reimagine 200 locations continued to outperform, with comps rising 2.4%, marking positive comparable-sales growth in eight of the last nine quarters.
At the Bloomingdale’s brand, comps increased 10.2% on an owned-plus-licensed-plus-marketplace basis, marking its seventh consecutive quarter of growth and delivering the highest first-quarter sales volume in the brand’s 154-year history.
Comps at the Bluemercury brand rose 6.4% on an owned-plus-licensed-plus-marketplace basis, driven by strength in makeup, dermatological skincare and fragrance categories. New and remodeled stores continued to outperform during the first quarter.
Insight Into Macy’s Margins & Expenses
The gross margin in the fiscal first quarter was 38.9%, which beat our estimate of 38.6%. This represented a year-over-year decline of 30 basis points. Management indicated that tariffs negatively impacted the gross margin by approximately 30 basis points, and excluding this impact, the gross margin would have been flat with the prior-year period.
The Zacks Rank #4 (Sell) company reported selling, general and administrative (SG&A) expenses of $1.95 billion, up 2% year over year. The increase reflected continued investments in the Bold New Chapter strategy, including Reimagine 200 locations, Bloomingdale’s and digital capabilities across nameplates. These investments were partially offset by ongoing cost-management efforts. As a percentage of total revenues, SG&A expenses remained flat at 39.9% compared with the prior-year quarter. We estimated SG&A expenses to increase 2.4% year over year in the fiscal first quarter.
Macy’s reported adjusted EBITDA of $290 million, down from $304 million in the year-ago quarter. The adjusted EBITDA margin was 5.9% of the total revenues compared with 6.3% in the prior-year period, representing a year-over-year decline of 40 basis points.
M’s Financial Snapshot: Cash, Inventory & Equity Overview
The company ended the first quarter of fiscal 2026 with cash and cash equivalents of $1.29 billion, and total debt of $2.43 billion. Macy’s also had $2 billion of available borrowing capacity under its asset-based credit facility. The company does not face any material long-term debt maturities until 2030, underscoring its strong liquidity position.
Merchandise inventories increased 3.6% year over year. Management stated that both the composition and level of inventory are well-positioned heading into the summer season, supported by increased newness across price points and lower aged inventories relative to last year.
During the fiscal first quarter, the operating cash flow was an inflow of $292 million against an outflow of $64 million in the prior-year quarter. The free cash flow was an inflow of $140 million against an outflow of $203 million a year ago, reflecting significantly improved cash generation. Capital expenditure totaled $177 million, while monetization proceeds were $25 million.
Through its capital-return program, Macy’s returned $100 million to shareholders during the quarter, including $50 million in dividends and $50 million in share repurchases. The company repurchased 2.6 million shares for $50 million during the quarter. As of the end of the fiscal first quarter, $1.1 billion was available under its $2-billion share repurchase authorization.
Macy’s Q2’26 Outlook
For the second quarter of fiscal 2026, Macy’s expects net sales of $4.75-$4.80 billion. The outlook incorporates the impacts of fiscal 2025 store closures, which contributed roughly $35 million to sales during the comparable prior-year period. Comparable sales are projected to be flat to up 1% on an owned-plus-licensed-plus-marketplace basis.
The company expects the adjusted EBITDA margin between 6.9% and 7.2%, while adjusted earnings per share are forecast to be 29-34 cents. Management noted that tariffs and fuel costs are expected to remain a headwind in the fiscal second quarter, with the combined impacts anticipated to reduce earnings by 3-4 cents per share and pressure the gross margin by 20-40 basis points.
Sneak-Peek Into Macy’s FY26 Guidance
Following its better-than-expected fiscal first-quarter performance, Macy’s raised its fiscal 2026 outlook. Management noted that the updated guidance reflects stronger-than-anticipated fiscal first-quarter results and a modest increase in expected sales for the remainder of the year.
The company continues to acknowledge macroeconomic and geopolitical uncertainties that could influence discretionary spending and has maintained flexibility within its business model to respond to changes in the competitive landscape and external environment. The outlook assumes a larger tariff impact in the first half of the year than in the second half and does not include any tariff refunds. The guidance also reflects continued investments in Reimagine 200 locations and the company’s luxury nameplates to support long-term growth.
Macy’s expects net sales of $21.5-$21.75 billion, up from the previously mentioned $21.4-$21.65 billion. The outlook continues to reflect the impacts of fiscal 2025 store closures, which reduced annual net sales by approximately $145 million. The company also expects other revenues of $920 million.
Comparable sales (owned-plus-licensed-plus-marketplace) are projected to increase 0.5-1.2% compared with the prior stated range of a decline of 0.5% to growth of 0.5%. The improved outlook reflects continued momentum across the company’s go-forward business and positive customer response to its strategic initiatives.
The gross margin is anticipated to be 38.4-38.6%, indicating a 20-30 basis-point headwind from tariffs and fuel costs. SG&A expenses are expected to increase 1-2% on a dollar basis compared with fiscal 2025, with the expense rate anticipated to be in line with the prior year in the fiscal second and fourth quarters, and higher in the third quarter due to the timing of growth investments.
M Stock Past 3-Month Performance
Image Source: Zacks Investment Research
The adjusted EBITDA margin is expected between 7.7% and 7.9%. Adjusted earnings per share are anticipated to be $2.00-$2.20, up from the previously mentioned $1.90-$2.10. This incorporates an estimated 10-20-cent combined impact of tariffs and fuel costs. The outlook does not include the impacts of any future share repurchases under the company's existing authorization.
M shares have gained 14.8% in the past three months compared with the industry’s 2.2% growth.
Stocks to Consider
We have highlighted three better-ranked stocks in the retail space, namely, Tapestry, Inc. TPR, Dillard's Inc. DDS and Ross Stores Inc. ROST.
Tapestry is the designer and marketer of fine accessories and gifts for women and men in the United States and internationally. The company flaunts a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for Tapestry’s current fiscal-year earnings and sales indicates growth of 36.3% and 13.8%, respectively, from the year-ago actuals. TPR delivered a trailing four-quarter average earnings surprise of 15.6%.
Dillard's is a large departmental store chain featuring fashion apparel and home furnishings. It currently sports a Zacks Rank of 1.
The Zacks Consensus Estimate for Dillard's current fiscal-year earnings and sales suggests growth of 6.3% and 2.1%, respectively, from the year-ago actuals. DDS delivered a trailing four-quarter average earnings surprise of 27.9%.
Ross Stores operates as an off-price retailer of apparel and home accessories, primarily in the United States. The company has a Zacks Rank #2 (Buy) at present.
The Zacks Consensus Estimate for Ross Stores’ current fiscal-year earnings and sales indicates growth of 15.6% and 8.2%, respectively, from the year-ago actuals. ROST delivered a trailing four-quarter average earnings surprise of 10.2%.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Macy's Beats Q1 Earnings Estimates on Comps Growth, Raises FY27 View

Key Points
Macy's reported a 3% comps increase in the first quarter and beat expectations for EPS.
Berkshire Hathaway opened a new stake in the company.
Macy's stock is trading at a cheap valuation.
Shares of Macy's (NYSE: M) stock rose 11% in May, according to data provided by S&P Global Market Intelligence. It got a boost from Berkshire Hathaway's new stake, and it reported a solid earnings beat.
Changing with the times
Macy's owns the largest department store in the world in Herald Square in New York City, but while massive stores used to generate massive sales, the retail climate has drastically changed in recent years. The advent of e-commerce and the shift to smaller, more agile shopping venues have been a major drag on Macy's sales, and it has struggled to stay relevant.
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It has been trying to pump oxygen into the business for years, with muted success. It has closed a significant percentage of stores to allocate resources to the better-performing ones, it has renovated stores that remain open, and it has shifted focus to e-commerce and omnichannel shopping. Management calls its strategy the "Bold new chapter," and it also involves becoming more efficient through technology.
There's been progress, and adjusted earnings per share (EPS) came in at $0.13 in the 2026 fiscal first quarter (ended May 3), a full dime higher than the $0.03 expected by Wall Street analysts. Comparable sales (comps) were up 3% year over year, the best result in four years, driven by an oustanding 10.2% increase at Bloomingdale's; Macy's also owns cosmetics retailer Bluemercury, which was also strong with a 6.4% comps increase.
The company reported a comps increase for the full 2025 after several years of declines, and it's expecting positive comps in 2026 as well.
Too cheap to ignore?
Macy's stock has been slammed over the past few years as sales declined and it seemed to be on the way to irrelevance. But Greg Abel is Warren Buffett's disciple, and part of the Buffett way is to find undervalued stocks. Macy's still has plenty of assets, and its new strategy is breathing life into the business, which means it could be primed for a comeback.
The stock is 70% off its high from a decade ago, and it's trading at less than nine times trailing 12-month earnings. It's easy to see why this combination could look compelling if you believe Macy's has a way forward.
Berkshire Hathaway's stake is only a tiny fraction of its portfolio, and it accounts for 1.2% of Macy's stock, so investors should take this with a grain of salt. Macy's does pay an attractive dividend, though, that yields 3.4% at the current price.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Why Macy's Stock Jumped 11% in May

Macy’s, Inc. (M) used its first quarter of fiscal 2026 call to make a broader point than an earnings beat. Management said the company’s Bold New Chapter strategy is gaining traction across banners, with stronger execution, healthier category breadth and a more responsive customer.
That message mattered because the quarter also gave Macy’s room to raise full-year guidance while keeping a cautious tone on tariffs, fuel costs and the macro backdrop.
Macy’s Raises Outlook After Broad-Based Beat
M reported adjusted earnings per share of $0.13, ahead of the Zacks Consensus Estimate of $0.02 and delivering a 678.44% surprise. Revenues of $4.68 billion also topped the Zacks Consensus Estimate of $4.62 billion by 1.28%.
Macy's, Inc. Price, Consensus and EPS Surprise
Chief executive officer and chairman Tony Spring said the company posted its best comparable sales performance in four years, with all nameplates and channels positive. He framed that as evidence that Macy’s merchandising, service and marketing changes are starting to resonate more consistently.
Management also raised full-year guidance. Macy’s now expects fiscal 2026 net sales of $21.5 billion to $21.75 billion, comparable sales growth of 0.5% to 1.2% and adjusted EPS of $2.00 to $2.20.
Macy’s Reimagine Stores Keep Leading the Chain
Spring pointed to Macy’s nameplate as a central proof point for the strategy, with comparable sales up 1.6% and Reimagine 200 locations up 2.4%. He said those stores have now delivered positive comparable sales in eight of the last nine quarters.
The CEO described Reimagine less as a single initiative than as a store-level operating model. He said the gains are coming from sharper assortments, stronger storytelling, added staffing, better fitting-room and beauty service, and more local decision-making.
That local element came up again in the Q&A. Responding to Telsey Advisory Group, Spring said local leaders now have more freedom to deploy resources by floor and area, which he tied to better execution across regions and cohorts.
Macy’s Sees Luxury and Beauty Outperform
The strongest growth again came from Macy’s higher-end banners. Bloomingdale’s comparable sales rose 10.2%, while Bluemercury comps increased 6.4%.
Spring said Bloomingdale’s is benefiting from premium contemporary and luxury positioning, new brands, personalized service and traffic-driving events. He also said the banner is gaining from closer collaboration with Macy’s without losing brand distinction.
Beauty remained another bright spot. Management said Bluemercury’s quarter was driven by makeup, dermatological skin care and fragrances, while Spring added in the Q&A that all three banners are leaning into service-led beauty experiences to make stores more relevant.
Macy’s Balances Growth Spending and Cost Pressure
Chief operating officer and chief financial officer Thomas Edwards said gross margin was 38.9% of net sales, down 30 basis points from last year. Excluding tariffs, he said gross margin would have been flat.
Edwards argued that expense control was a bigger positive. SG&A was flat as a percent of revenues despite continued investment in Reimagine, Bloomingdale’s and digital initiatives, helping adjusted EBITDA come in above guidance at 5.9% of total revenues.
The company’s outlook still reflects outside cost pressure. Edwards said full-year guidance assumes tariff rates lower than previously expected but also elevated fuel and transportation costs, with the two factors netting to a neutral effect for the year.
Macy’s Q&A Centers on Traffic, AUR and Margins
Several analysts pressed on the durability of the sales momentum. In response to questions from Jefferies and Goldman Sachs, management said second-quarter trends had remained encouraging and the first quarter was notably consistent month to month.
Spring said traffic improved sequentially, while average unit retail and basket size stayed supportive. He told analysts that Macy’s is carrying a better mix of premium fabrication, stronger brands and less clearance merchandise, which is helping pricing without relying on heavier promotions.
Evercore ISI and UBS focused on the link between higher AUR and margins. Edwards said first-quarter gross margin performance was in line with internal expectations and maintained that the company still sees room for margin build through the rest of the year as inventory and assortment tools improve.
Macy’s Uses AI and Events to Deepen Engagement
Macy’s also used the call to highlight customer-facing and operational initiatives beyond the quarter. Spring said Ask Macy’s, the new AI-powered shopping assistant, is producing higher conversion among users in its early stages.
Edwards added that the company now has 35 AI pilots and tests underway, spanning customer service, associate productivity and supply-chain use cases. He said the goal is to support the broader strategy rather than pursue technology for its own sake.
Management also emphasized event-driven customer engagement. Spring tied upcoming fireworks, parade, MLB and World Cup activations to Macy’s effort to create reasons to visit stores and digital channels beyond basic need-based purchases.
Macy’s Ends the Call With Measured Confidence
The tone exiting the call was constructive but disciplined. Spring repeatedly said the company feels good about the factors it can control, while keeping room for guidance for geopolitical and macro uncertainty.
Edwards reinforced that posture by pairing the stronger sales outlook with a prudent stance on tariffs, fuel and competitive conditions. The overall message was that Macy’s sees clearer internal momentum, but is not ready to declare the external environment easy.
Macy’s Rank and Style Signals
M carries a Zacks Rank #4 (Sell), along with a Value Score of A, Growth Score of B, Momentum Score of A and VGM Score of A. Those Style Scores point to favorable characteristics across value, growth and momentum factors, with the VGM Score indicating strong combined appeal.
Still, Zacks materials make clear that the Rank takes priority over the Style Scores. A Zacks Rank #4 signals weaker earnings estimate revision trends, even when other style measures look attractive. That rank can change after a fresh earnings report as analyst estimates are updated.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Macy's Q1 Earnings Call Highlights Bold New Chapter Momentum

Wednesday, June 3rd, 2026
Jobs Week Coming Up Roses So Far: JOLTS, ADP
Don’t look now, but the labor market in the U.S. has demonstrably improved. Where we had been at historic lows on job openings and under water on private-sector payrolls roughly a year ago, we’re now seeing monthly highs that go back prior to the second Trump administration.
Yesterday’s Job Openings and Labor Turnover Survey (JOLTS) report for April spiked to 7.6 job openings, up from 6.88 million expected and the 6.89 million reported. This is the highest monthly tally since November of 2024, after two downward-moving months. Job Quits quieted to 3.0 million in the month.
The biggest change between March and April was in the near-million-job swing among Professional/Business Services positions, which went from -318K in the former month to +668K in the latter. In March, only the Northeast region gained in job opportunities; for April, only the Midwest did not show a gain in new job openings.
Automatic Data Processing ADP released its monthly private-sector payroll report this morning for May, posting +122K new jobs filled outside the government sector — the strongest month for this metric since January of 2025. It improves above the +117K consensus estimate and the downwardly revised +105K for April.
Small businesses bounced back in a big way: +67K new private-sector jobs were gained at firms of fewer than 50 employees. Large companies (over 500 employees) grew by +40K, and medium-sized businesses added +17K. Unsurprisingly, Education/Healthcare led by industry, +57K, followed by renewed strength in Trade/Transportation/Utilities at +36K, +11K at Professional/Business consulting, and +8K in Construction. This last may speak to the spreading out of AI investment to material parts of the economy — the building out of data centers includes plenty of construction work.
“Hiring has been more broad-based,” ADP Chief Economist Nela Richardson said, which bears out these findings. Meanwhile, wage gains in the private sector have been a non-factor: those who stayed in their current jobs made +4.4% more on average, whereas jobs changers averaged +6.6%. This remains a very narrow bar in the relatively short time ADP has kept this metric.
Q1 Earnings at a Glance: M, MDT & More to Come
Retail companies wrap up Q1 earnings season this morning, with department store major Macy’s M reporting its most impressive quarter in years: earnings of $0.13 per share trounced the +$0.02 expected, for a positive earnings surprise of +550%. Revenues also outpaced estimates, but by a more modest +1.28%. Raised guidance helped sentiment, and shares are up around +1% in today’s pre-market. For more on M’s earnings, click here.
Medtronic MDT, the world’s largest medical device company, also beat estimates this morning, for its fiscal Q4. Earnings of $1.55 per share improved over the Zacks consensus by a penny, on revenues of $9.81 billion — its highest growth in a decade — and above expectations by +1.48%. Shares are up +4% at this hour of the pre-market, but still down nearly -20% year to date. For more on MDT’s earnings, click here.
After today’s close, the earnings parade sweeps up some of its final noteworthy reporters. These include semiconductor giant Broadcom AVGO, cybersecurity major CrowdStrike CRWD and Calvin Klein/Tommy Hilfiger parent PVH PVH.
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Macy's, Inc. (M) : Free Stock Analysis Report
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This article originally published on Zacks Investment Research (zacks.com).
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Indicator	TTM Median
P/E	9.34 20.29
Price/Sales	0.26 0.67
P/B	1.33 1.88
P/FCF	6.20 14.17

Indicator	TTM Median
ROE	14.22 14.55
ROA	3.96 4.94
ROI	9.13 8.61
Net Worth	5.96 0.88
Quick Ratio	0.50 0.91
Current Ratio	1.49 1.47

Indicator	TTM Median
Net Profit Margin	2.84 5.67
Operating Margin	4.55 8.11
Gross Margin	40.33 38.46
Return on tangible equity	14.96 20.83

Indicator	TTM Median
EPS	0.13 0.45
EPS Forecast	0.02 0.43
Revenue	7.92B 186.00M
Gross Profit	2.97B —
EBITDA	278.00M —

Macy's Inc

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