Macy's reported stronger-than-expected first-quarter results, with sales climbing 1.8% to $4.68 billion as its multiyear turnaround plan shows momentum. The department-store chain lifted its full-year adjusted earnings forecast to $2-$2.20 per share, up from the previous $1.90-$2.10 range, signaling confidence in continued recovery.

The improved outlook puts Macy's ahead of Wall Street expectations, which had projected $2.09 per share. Comparable sales—once expected to range from down 0.5% to up 0.5%—are now anticipated to grow 0.5% to 1.2%, marking a meaningful shift from earlier pessimistic projections.

Full-year sales guidance increased to $21.5 billion-$21.8 billion, compared with the prior $21.4 billion-$21.7 billion range. Analysts expect $21.6 billion in total sales, putting Macy's guidance slightly above consensus projections.

The results reflect progress on cost-cutting initiatives and store optimization efforts that have been underway for several years. After closing dozens of locations and streamlining operations, Macy's appears to be stabilizing its business amid intense retail competition and shifting consumer preferences toward online shopping.