Investing.com -- Macy’s Inc shares rose in premarket trading on Wednesday after the U.S. department store operator posted first-quarter profit and sales that beat analyst estimates and raised its full-year forecast, as its store overhaul strategy showed signs of gaining traction.

Macy’s reported adjusted earnings per share of $0.13 for the quarter ended May 2026, beating the analyst estimate of $0.03 by $0.10. Net sales rose 1.8% to $4.70 billion, topping the consensus estimate of $4.61 billion.

"We’re off to a strong start to the year, exceeding expectations for the fifth consecutive quarter as our Bold New Chapter strategy continues to build momentum," chairman and chief executive Tony Spring said in a statement.

Comparable sales across the company’s three nameplates, Macy’s, Bloomingdale’s and Bluemercury, rose 3%, the strongest first-quarter performance in four years.

Bloomingdale’s led the group with a 10.2% comparable sales increase, its seventh consecutive quarter of gains and a record first-quarter result for the nameplate. Bluemercury posted a 6.4% comparable sales increase, while Macy’s comparable sales rose 1.6%, with its Reimagine 200 store locations up 2.4%.

Gross margin came in at 38.9%, a decline of 30 basis points, though the company said excluding a 30-basis-point tariff impact, the margin was flat against the prior year period.

Selling, general and administrative expenses of $2 billion rose $39 million year-over-year but held steady as a percentage of total revenue at 39.9%. Adjusted EBITDA was $290.00 million, or 5.9% of total revenue, compared with $304.00 million, or 6.3%, in the same period a year earlier.

GAAP diluted EPS came in at $0.23, up from $0.13 in the first quarter of 2025. Adjusted diluted EPS of $0.13 compared with $0.11 a year earlier.

For the full year, Macy’s raised its net sales forecast to $21.50 billion to $21.75 billion from a prior range of $21.40 billion to $21.65 billion, and lifted its comparable sales growth guidance to 0.5% to 1.2% from a prior range of negative 0.5% to positive 0.5%.

Adjusted diluted EPS guidance was raised to $2 to $2.20 from $1.90 to $2.10, bracketing the analyst consensus of $2.10. The company maintained its adjusted EBITDA margin guidance at 7.7% to 7.9% of total revenue.

Macy’s ended the quarter with $1.30 billion in cash and $2 billion in available borrowing capacity. Total debt stood at $2.40 billion, with no material long-term maturities until 2030.

The company repurchased 2.6 million shares for $50 million during the quarter and paid $50 million in dividends, with approximately $1.10 billion remaining under its $2 billion buyback authorization.