The news: Macy’s said sales are off to a healthy start in 2026, building on a strong performance in the holiday quarter.

The company forecast Q1 net and comparable sales above estimates, citing “resilient” spending from middle- and upper-income consumers, who continue to “shop for newness and for fashion,” CEO Tony Spring told Bloomberg.

What’s working for Macy’s: Macy’s results are buoyed by both internal and external factors.

It’s making progress on its turnaround plan. The company’s focus on improving the quality of its assortment, investing in store staff, and upgrading the store experience are helping to restore its relevance to shoppers. Those efforts are paying off especially at Macy’s, where stores revamped under the “Bold New Chapter” strategy reported a 0.9% increase in comparable sales—far ahead of the 0.4% growth for all locations.

Bloomingdale’s is benefiting from Saks Global’s problems. As Saks grappled with cash-flow issues and set store closures, Bloomingdale’s gained share and delivered its best-ever holiday quarter in Q4 2025. Comparable sales rose 9.9% YoY as shoppers scooped up fragrances, designer clothing, and fine jewelry. Looking ahead, the retailer sees an opportunity to open more Bloomingdale’s stores, further taking advantage of the opening left by Saks and Neiman Marcus.

Its retail media partnership with Amazon is accelerating ad revenues. Macy’s Media Network grew 12.5% YoY in Q4, the first full quarter in which the retailer used Amazon’s technology to power its advertising business. That’s a considerable improvement from the previous quarter, when revenues were flat.

The implications: Like most retailers, Macy’s is proceeding cautiously. The retailer’s conservative full-year outlook reflects uncertainty tied to the war in Iran, as well as other geopolitical and macroeconomic factors such as tariffs that could affect operations and consumer sentiment.

Given the unknowns, Macy’s is focusing on what it can control: delivering products people want in a pleasant environment with helpful staff. Doing so consistently could enable the retailer to become a respite for shoppers seeking comfort and escapism amid growing uncertainty.

This content is part of EMARKETER’s subscription Briefings, where we pair daily updates with data and analysis from forecasts and research reports. Our Briefings prepare you to start your day informed, to provide critical insights in an important meeting, and to understand the context of what’s happening in your industry. Non-clients can click here to get a demo of our full platform and coverage.