Macy's CEO Tony Spring recently spoke about the unexpected strength of sales for large-scale purchases, such as mattresses and high-end jewelry. During a first-quarter earnings call, he indicated that these items have been selling well, with no notable reductions in spending despite a negative shift in economic sentiment in recent months. He suggested that the company, which also controls Bloomingdale's and Bluemercury, is preparing for potential changes in consumer behavior throughout the rest of the year.
“Big-ticket” items, such as home furnishings, jewelry, watches, and bed linens, were popular purchases in the last quarter. However, it remains unclear whether the upsurge in sales was driven by concern over potential price hikes due to import tariffs.
Spring’s observation of consumer behavior follows ongoing discussions on the subject. Despite indicators of declining consumer sentiment, demand continues to surpass these metrics. This discrepancy has been noted by several other executives, including Wells Fargo CEO Charlie Scharf.
While Macy’s predicts that sales will soften, it is expected that competition among retailers will intensify as promotions increase in an effort to attract customers. The company forecasts that comparable sales will dip between 0.5% and 2% for the full fiscal year. Meanwhile, the earnings expectations per share have been revised from the initial range of $2.05 to $2.25 in March to the current estimate of $1.60 to $2.00.