Macy's Inc. reported first-quarter earnings for 2026 that surpassed expectations, with adjusted earnings per share at $0.16, against estimates of $0.14, and revenue of $4.79 billion, compared to the anticipated $4.66 billion. Despite these results, the company cut its full-year profit forecast, citing tariff pressures and cautious consumer spending. Macy's now expects full-year adjusted earnings per share to range between $1.60 and $2.00, down from a previous forecast of $2.05 to $2.25. The retailer's gross margin for the quarter was 39.2%, slightly above the expected 39.1%. Net sales reached $4.60 billion, exceeding the $4.46 billion forecast. Macy's maintained its full-year net sales outlook at $21 billion to $21.4 billion, aligning with the $21.05 billion estimate. Bloomingdale's and Bluemercury showed strong comparable sales, while the Reimagine 125 stores outperformed the broader Macy's fleet. CEO Tony Spring indicated that the company is navigating tariff-induced uncertainty by selectively raising prices on some products to mitigate the impact on margins. Macy's is also adjusting its supply chain and sourcing strategies to manage costs. The retailer sees an opportunity to gain market share as tariffs affect pricing across the industry.