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Macy's Is Riding Retail Trends in Luxury AI and Omnichannel
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Key Takeaways
Macy's luxury banners drove growth, with Bloomingdale's up 10.2% and Bluemercury up 6.4%.
Macy's digital sales reached 34% of net sales as stores and e-commerce worked together.
Macy's is expanding AI tools and supply-chain automation to improve inventory and fulfillment.
Macy's, Inc. (M - Free Report) is no longer just a department-store turnaround story. Its latest progress is tied to retail trends that could shape the business beyond one quarter.
Luxury demand, omnichannel selling, artificial intelligence tools and supply-chain upgrades are becoming more central to the company’s strategy. The question is whether these initiatives can improve execution enough to offset cost pressure and uneven discretionary demand.
Macy’s Luxury Mix Is Becoming More Important
Bloomingdale’s and Bluemercury are giving Macy’s a higher-quality mix as the core department-store channel remains less consistent. Bloomingdale’s posted 10.2% comparable sales growth in the first quarter of 2026 and recorded its highest first-quarter sales volume in 154 years.
Bluemercury added 6.4% comparable sales growth, led by makeup, dermatological skincare and fragrances. New and remodeled Bluemercury stores continued to outperform, giving Macy’s another premium banner that can support resilience when lower-income customers turn more selective.
Image Source: Zacks Investment Research
M Omnichannel Keeps Gaining Share
Digital sales represented 34% of net sales in the first quarter, up from 33% a year earlier. That matters because Macy’s go-forward model is built around stores and digital working together, rather than treating e-commerce as a separate channel.
Store initiatives are also reinforcing the online experience. Reimagine locations helped the Macy’s nameplate generate 1.6% comparable sales growth, while digital contributed to the positive comparable sales result. This makes omnichannel execution a structural part of the turnaround.
Macy’s AI Push Moves Into Daily Retail
Macy’s AI efforts are focused on practical retail tasks. The company is using AI-related work in inventory forecasting and management, areas that can affect in-stock levels, replenishment and customer satisfaction.
Ask Macy’s, an AI-powered conversational shopping assistant, is another example. The tool is meant to support discovery across channels and reduce friction in the shopping journey, which is more useful than a broad technology claim without a clear customer purpose.
M Supply Chain Upgrades Could Add Leverage
Supply-chain modernization is another part of the trend story. Macy’s China Grove distribution facility is ramping up, with automation delivering early benefits in service levels and cost efficiencies.
The company is also building additional capacity ahead of the holiday period. Better order flow and fulfillment can support the digital channel, improve customer experience and help control costs as the company continues investing in its go-forward store base.
The trend case does not remove the financial constraints. Tariffs reduced first-quarter gross margin by about 30 basis points, and second-quarter guidance assumes tariffs and fuel costs will create a 20- to 40-basis-point gross margin headwind.
Consumer demand is another limit. Lower-income cohorts remain more choosy, while big-ticket home, especially furniture, was soft in the quarter. Amazon.com, Inc. (AMZN - Free Report) remains a key benchmark in digital convenience, while Walmart Inc. (WMT - Free Report) is a scale-driven omnichannel retailer that keeps pricing and fulfillment expectations high across retail.
What Macy’s Signals Say About the Trend Trade
Macy’s has credible exposure to attractive retail themes, especially luxury, AI-enabled selling and omnichannel shopping. Still, these trends need to translate into durable sales growth and margin protection before the stock earns a stronger trend-driven case.
The stock currently carries a Zacks Rank #3 (Hold), which fits a balanced view rather than a high-conviction call. The Neutral stance reflects visible progress, but also recognizes pressure from tariffs, freight costs, consumer caution, competition and ongoing investment needs. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
No Style Scores are provided for Macy’s in the available setup. That limits the factor lens investors normally use to assess Value, Growth, Momentum and VGM Score, so the debate falls back to valuation, execution and earnings durability.
A Zacks Rank #3 can still be held when the business case remains intact, but the Style Scores framework generally favors stocks with stronger rank support and A or B scores. For Macy’s, the trend exposure is real, but investors still need evidence that these initiatives can compound through a tougher discretionary retail backdrop.
View the Zacks #1 Rank List
Image: Bigstock
Macy's Is Riding Retail Trends in Luxury AI and Omnichannel
Key Takeaways
Macy's, Inc. (M - Free Report) is no longer just a department-store turnaround story. Its latest progress is tied to retail trends that could shape the business beyond one quarter.
Luxury demand, omnichannel selling, artificial intelligence tools and supply-chain upgrades are becoming more central to the company’s strategy. The question is whether these initiatives can improve execution enough to offset cost pressure and uneven discretionary demand.
Macy’s Luxury Mix Is Becoming More Important
Bloomingdale’s and Bluemercury are giving Macy’s a higher-quality mix as the core department-store channel remains less consistent. Bloomingdale’s posted 10.2% comparable sales growth in the first quarter of 2026 and recorded its highest first-quarter sales volume in 154 years.
Bluemercury added 6.4% comparable sales growth, led by makeup, dermatological skincare and fragrances. New and remodeled Bluemercury stores continued to outperform, giving Macy’s another premium banner that can support resilience when lower-income customers turn more selective.
Image Source: Zacks Investment Research
M Omnichannel Keeps Gaining Share
Digital sales represented 34% of net sales in the first quarter, up from 33% a year earlier. That matters because Macy’s go-forward model is built around stores and digital working together, rather than treating e-commerce as a separate channel.
Store initiatives are also reinforcing the online experience. Reimagine locations helped the Macy’s nameplate generate 1.6% comparable sales growth, while digital contributed to the positive comparable sales result. This makes omnichannel execution a structural part of the turnaround.
Macy’s AI Push Moves Into Daily Retail
Macy’s AI efforts are focused on practical retail tasks. The company is using AI-related work in inventory forecasting and management, areas that can affect in-stock levels, replenishment and customer satisfaction.
Ask Macy’s, an AI-powered conversational shopping assistant, is another example. The tool is meant to support discovery across channels and reduce friction in the shopping journey, which is more useful than a broad technology claim without a clear customer purpose.
M Supply Chain Upgrades Could Add Leverage
Supply-chain modernization is another part of the trend story. Macy’s China Grove distribution facility is ramping up, with automation delivering early benefits in service levels and cost efficiencies.
The company is also building additional capacity ahead of the holiday period. Better order flow and fulfillment can support the digital channel, improve customer experience and help control costs as the company continues investing in its go-forward store base.
Macy's, Inc. Price, Consensus and EPS Surprise
Macy's, Inc. price-consensus-eps-surprise-chart | Macy's, Inc. Quote
Macy’s Trend Story Still Faces Pressure
The trend case does not remove the financial constraints. Tariffs reduced first-quarter gross margin by about 30 basis points, and second-quarter guidance assumes tariffs and fuel costs will create a 20- to 40-basis-point gross margin headwind.
Consumer demand is another limit. Lower-income cohorts remain more choosy, while big-ticket home, especially furniture, was soft in the quarter. Amazon.com, Inc. (AMZN - Free Report) remains a key benchmark in digital convenience, while Walmart Inc. (WMT - Free Report) is a scale-driven omnichannel retailer that keeps pricing and fulfillment expectations high across retail.
What Macy’s Signals Say About the Trend Trade
Macy’s has credible exposure to attractive retail themes, especially luxury, AI-enabled selling and omnichannel shopping. Still, these trends need to translate into durable sales growth and margin protection before the stock earns a stronger trend-driven case.
The stock currently carries a Zacks Rank #3 (Hold), which fits a balanced view rather than a high-conviction call. The Neutral stance reflects visible progress, but also recognizes pressure from tariffs, freight costs, consumer caution, competition and ongoing investment needs. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
No Style Scores are provided for Macy’s in the available setup. That limits the factor lens investors normally use to assess Value, Growth, Momentum and VGM Score, so the debate falls back to valuation, execution and earnings durability.
A Zacks Rank #3 can still be held when the business case remains intact, but the Style Scores framework generally favors stocks with stronger rank support and A or B scores. For Macy’s, the trend exposure is real, but investors still need evidence that these initiatives can compound through a tougher discretionary retail backdrop.