Macy’s raises annual forecasts as luxury focus draws affluent shoppers

June 3 (Reuters) – Macy’s raised its annual forecasts and posted its first quarterly sales growth in nearly four years on Wednesday, driven by strong demand for high-end apparel and accessories, particularly at its Bloomingdale’s stores.

Shares of the company, which also beat quarterly sales estimates, were up about 4% in choppy premarket trading.

The results underscore the K-shaped recovery in U.S. consumer spending, with higher-income shoppers continuing to splurge on discretionary and luxury goods while lower-income households pull back amid rising economic uncertainty.

Michael Kors owner Capri Holdings last month provided an upbeat annual profit target, while premium apparel brand Ralph Lauren beat quarterly sales estimates.

“Customers are responding,” Macy’s CEO Tony Spring said, as he presses ahead with the “Bold New Chapter” turnaround that has focused on higher-end labels, including Bloomingdale’s and Bluemercury, expanding full-price sales, reinvesting in higher-potential locations and closing underperforming stores.

Macy’s now expects fiscal 2026 net sales of $21.50 billion to $21.75 billion, compared with its prior forecast of $21.40 billion to $21.65 billion.

It estimated annual adjusted per-share profit of $2 to $2.20, compared with its earlier forecast of $1.90 to $2.10.

First-quarter sales rose 1.8% to $4.68 billion, ending 15 consecutive quarters of declines and beating analysts’ average estimate of $4.61 billion, according to data compiled by LSEG.

At Bloomingdale’s, comparable sales jumped 10.2%, while they rose 6.4% at Bluemercury.

Meanwhile, comparable sales at Macy’s namesake stores ticked up 1.6%.

On an adjusted basis, Macy’s posted earnings per share of 13 cents.

(Reporting by Neil J Kanatt in Bengaluru; Editing by Sriraj Kalluvila)