Macy’s Posts Strongest Q1 Growth in 4 Years

Macy's posted its strongest fiscal first-quarter comparable sales performance in four years on Wednesday, as the legacy department store’s turnaround continues to show progress. Led by the 200 so-called reimagined stores Macy’s has upgraded, comparable sales grew 3 percent overall during the quarter and 1.6 percent at its namesake banner.

At Bloomingdale’s, comparable sales grew 10.2 percent, helped by an array of buzzy brands, a “fun factor” unique in the luxury landscape, and the recent bankruptcy of rival Saks Fifth Avenue, CEO Tony Spring told CNBC in an interview. 

Total Retail's Take: While certainly encouraging news for Macy's, the real test will be whether the retailer can continue the positive momentum through Q2 and the rest of the year. Many retailers have reported strong growth during their fiscal first quarters due in part to higher-than-usual tax refunds. As those refunds get spent and consumers are still faced with rising household and daily expenses, particularly for gas, it creates a more challenging environment for retailers. For Macy's, the company's turnaround has been led by a resurgence in its brick-and-mortar business, including shuttering underperforming locations and reinvesting in those it kept open. According to Spring, the formula for future success will be a return to retail fundamentals, including stocking in-demand products and brands as well as optimizing the customer experience.