Macy’s sales reached its highest level in more than three years, marking a major step forward in its turnaround effort.
The retailer, which launched its turnaround plan in 2024, highlighted two measures of progress in its latest report covering a three-month period ending Nov. 1. Sales at the stores it plans to keep open rose for the second straight quarter, while sales across the broader Macy’s brand, including all stores and its website, grew at the fastest pace in 13 quarters.
Bloomingdale’s and Bluemercury, which are also owned by Macy’s Inc., also continued to grow. The three-month period ending Nov. 1 marked the fifth straight quarter of comparable-store sales growth at Bloomingdale’s and the 19th consecutive quarter of growth at Bluemercury.
MACY’S WANTS BLOOMINGDALE’S, BLUEMERCURY TO STAY PUT
The results come as shoppers have been gravitating toward categories that play to Macy’s strengths.
A research note from JPMorgan analysts led by Matthew Boss pointed to strong demand for “giftable” categories such as sweaters, pajamas, sneakers and handbags, all of which are core to Macy’s assortment. The analysts noted that Coach bags were especially popular on Black Friday and were mostly selling at full price at Macy’s.
The analysts said that while retailers expected shoppers to pull back this quarter, newer products and stronger brand marketing led to customers buying more items at full price despite some price increases.
HOW MACY’S CAN TURN AROUND ITS BUSINESS AS DEPARTMENT STORE STRUGGLES
JPMorgan’s tracking shows that most retailers have kept promotions the same or lower than last year.
Stores also went into the holiday season with leaner, healthier inventories, giving them more flexibility to chase trends without needing heavy discounts, according to the analysts. This means department-store retailers, including Macy’s, have been able to sell more new products at full price this season, helped by lighter promotions and leaner inventories, according to the research note.
MACY’S ACCELERATES STORE CLOSURES THIS YEAR
The latest results are a milestone for the department store, which was forced to implement a strategy that included shuttering about 150 “underproductive” stores by the end of 2026, to return it to “sustainable, profitable sales.”
The problem was that Macy’s, once an established, premier department store, had long been struggling to keep up with rapid industry changes and competition.
Barington Capital CEO Jim Mitarotonda previously told FOX Business that Macy’s needed to reignite its creativity by featuring more exciting products in stores and hosting engaging events to attract younger generations back to its brick-and-mortar locations.
“If the product is not exciting, they’re [customers] not going to go to the store or even go on a Macy’s website. It’s just not going to happen. So it really is about the product and about creating exciting events to drive people into the store,” Mitarotonda said.
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