• by Sarah Mahoney , Staff Writer, 7 hours ago

Macy’s delivered its strongest comparable-sales performance in 13 quarters, giving long-skeptical industry watchers a clearer sign that its turnaround efforts are finally gaining traction. Bloomingdale’s posted its fifth consecutive quarter of comparable-sales gains, an 8.8% jump that stands out in a luxury apparel landscape still dealing with broad softness.

For the third quarter, net sales slipped 0.6% to $4.7 billion, a better-than-expected result. Comparable sales rose 2.5%. Under the Macy’s banner, comparable sales improved 1.4%, with the retailer pointing to continued progress in its reinvestment strategy. Same-store sales rose 1.7% in its 350-store “go forward” fleet, which is receiving more aggressive operational upgrades, and climbed 2.7% in the 125-store “Reimagine” group undergoing deeper transformation work. Blue Mercury notched a 1.1% comparable sales gain.

Tony Spring, Macy’s chairman and CEO, said the results offer evidence “that the meaningful enterprise-wide changes we’ve made are resonating with customers.” As the company heads into the holidays, Macy’s is “well-positioned with compelling new merchandise and an omnichannel customer experience that delivers both inspiration and value. With a strategy rooted in hospitality, our teams are focused on driving long-term, profitable growth,” Spring added.

Executives acknowledged that shoppers remain “choiceful,” but still raised the company’s sales outlook, citing Macy’s “strong financial position, diverse brand and category offerings, and range from off-price to luxury” as competitive strengths.

Net income fell to $11 million from $28 million a year ago, though that still exceeded expectations. One weaker spot came from retail media: sales in its emerging media network were flat at $42 million.

“On their own, these are respectable numbers,” wrote Neil Saunders, managing director of GlobalData. “But in the department store sector and for Macy’s, they are extremely solid and represent a very big chink of light at the end of what has been a very dark tunnel of decline.” He pointed to noticeable improvements in merchandising but warned that Macy’s “still has a lot to do – especially on carving out a distinct and well-differentiated proposition, further building its private label offer, and bolstering its homewares business. We can now see a pathway to accomplishing all these things.”