Macy's turnaround gains traction as Berkshire buys in and outlook rises
Strong Q1 results and raised outlook Macy's reported its strongest first-quarter comparable sales in four years, up 3%, with all nameplates positive. Management raised its 2026 sales and earnings guidance, signaling that its turnaround plan is working and boosting investor confidence.
This is the core fundamental driver showing the company's health is improving, which directly supports a higher stock price.
Berkshire Hathaway's new stake Berkshire Hathaway, led by new CEO Greg Abel, disclosed a new 3.04 million-share stake in Macy's, its first-ever investment in the company. This vote of confidence from a legendary investor attracted attention and helped push the stock up.
Berkshire's investment is a major external validation that can change how other investors view the stock, directly impacting demand for shares.
Berkshire increases its Macy's bet Berkshire Hathaway more than doubled its Macy's stake in the second quarter, boosting it by 142%. Although the dollar amount was small, the increased position reinforced the signal that Berkshire sees value in the retailer.
This follow-up buying shows Berkshire's conviction is growing, which can further support the stock price by attracting other investors.
Luxury banners drive momentum Bloomingdale's and Bluemercury are performing well, with comparable sales up 10.2% and 6.4%. Macy's is expanding luxury offerings and raising its fiscal 2026 outlook, citing this momentum as a key growth driver.
The luxury segment is a bright spot that justifies the raised guidance and shows the turnaround strategy is gaining traction, supporting higher earnings expectations.