Macy's Luxury Banners Gain Momentum With Bold New Chapter Strategy

Macy’s Inc. M is gaining momentum in its luxury business as part of its Bold New Chapter strategy, with Bloomingdale’s and Bluemercury emerging as important contributors to the company’s growth plans. Macy’s is leveraging elevated assortments, brand additions, personalized service and differentiated shopping experiences to strengthen its luxury presence. The strategy is designed to deepen customer engagement and expand the company’s presence across premium and luxury categories.

Bloomingdale’s is benefiting from its premium contemporary-to-luxury positioning and an elevated brand matrix. The banner is expanding brand relationships and creating more vibrant shopping environments through collaborations, activations and personalized customer service. Management believes that these initiatives can help expand share of wallet across brands, locations and categories while attracting luxury shoppers.

The company is broadening Bloomingdale’s luxury assortment with brands like Chloe Ready-to-Wear, Isabel Marant, Phoebe Philo, Park Denim, Aireloom and Kate Shoes. These additions complement the existing portfolio and are generating incremental sales among loyal customers while attracting clients. Management noted that brand partners increasingly view Bloomingdale’s as an attractive platform for entering or expanding distribution.

Bluemercury is adding another layer to Macy’s luxury strategy through its focus on beauty and personalized service. The banner is benefiting from demand across makeup, dermatological skin care and fragrances, while brands such as Byredo, Parfums de Marly, Dr. Diamond’s Metacine and SkinCeuticals are enhancing its premium assortment. New and remodeled stores are supporting the banner’s market presence and customer experience.

Macy’s remains committed to investing in its luxury nameplates to support long-term top-line growth. The company raised its fiscal 2026 net sales outlook to $21.5-$21.75 billion from $21.4-$21.65 billion, while comparable sales guidance increased to 0.5-1.2% from a decline of 0.5% to growth of 0.5%. The adjusted EPS guidance rose to $2-$2.20 from $1.90-$2.10. These investments in luxury banners underscore their importance to Macy’s broader growth strategy.

Macy’s Price Performance, Valuation & Estimates

M shares have risen 73.5% over the past year compared with the industry’s 34.9% growth. 

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From a valuation standpoint, Macy’s is trading at a forward 12-month price-to-sales ratio of 0.28X, down from the industry average of 0.49X. M has a Value Score of A.

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The Zacks Consensus Estimate for Macy’s fiscal 2026 earnings implies a year-over-year decline of 4.3%, while the same for fiscal 2027 indicates an uptick of 6%. Estimates for fiscal 2026 and 2027 have been revised upward by 3 cents each over the past seven days.

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Macy’s currently has a Zacks Rank #2 (Buy).

Other Key Picks

We have highlighted three other top-ranked stocks, namely, Target Corporation TGT, Kohl’s Corporation KSS and Ross Stores Inc. ROST.

Target offers guests fashionable, differentiated merchandise and everyday essentials at discounted prices. It currently sports a Zacks Rank of 1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Target’s current fiscal-year earnings and sales suggests growth of 35% and 4.6%, respectively, from the year-ago actuals. TGT delivered a trailing four-quarter average earnings surprise of 10.5%.

Kohl’s offers moderately priced apparel, footwear and accessories for women, men and children, along with beauty and home products. The company flaunts a Zacks Rank #2 at present. 

The Zacks Consensus Estimate for Kohl’s current fiscal-year earnings and sales suggests declines of 14.8% and 0.9%, respectively, from the year-ago actuals. KSS delivered a trailing four-quarter average earnings surprise of 69%.

Ross Stores operates as an off-price retailer of apparel and home accessories. The company carries a Zacks Rank #2 at present. 

The Zacks Consensus Estimate for Ross Stores’ current fiscal-year earnings and sales indicates growth of 19.5% and 11.5%, respectively, from the year-ago actuals. ROST delivered a trailing four-quarter average earnings surprise of 11.2%.

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