Macy's Stock at 52-Week Low: Buy or Avoid?

Macy's (NYSE: M) is one of America's best-known department-store chains, but the company has spent years fighting declining traffic, changing consumer preferences, intense competition and the rise of e-commerce. In 2026, however, the investment story is starting to look different.

The company has been executing its “A Bold New Chapter” strategy, focusing on better-performing stores, luxury businesses, digital growth and improved customer experience. The key question for investors is simple: Is Macy's still a value trap, or is the turnaround creating a genuine buying opportunity?

One important correction first: Macy's is not currently at a 52-week low. Recent market data show the shares around $22–$23, with a 52-week range of roughly $12.66–$26.59. The stock had also reached a 52-week high above $26 earlier in August. (GuruFocus)

The Turnaround Is Showing Results

Macy's delivered a strong first quarter of fiscal 2026.

Comparable sales increased 3.0%, marking the company's strongest first quarter in four years and its fourth consecutive quarter of comparable-sales growth. Bloomingdale's was particularly impressive, with comparable sales jumping 10.2%, while Bluemercury increased 6.4%. (Macy's Investors)

This matters because Macy's does not need explosive revenue growth to create shareholder value. Even modest sales growth combined with cost control, better inventory management and higher-margin businesses can significantly improve profitability.

Bloomingdale's Is a Major Strength

One of the most attractive parts of Macy's portfolio is actually Bloomingdale's.

The luxury-oriented chain has consistently outperformed the core Macy's business. In Q1 2026, comparable sales increased 10.2%, extending its streak of quarterly gains. (Macy's Investors)

That gives Macy's exposure to consumers who are less sensitive to economic weakness than traditional department-store shoppers.

Bluemercury, Macy's beauty business, is another potential growth engine. Its 6.4% comparable-sales growth in Q1 demonstrates that the company is gaining traction outside its traditional department-store operations. (Macy's Investors)

Reimagine Is Central to the Strategy

Macy's is investing heavily in its Reimagine store strategy.

The objective is to make selected stores more attractive by improving merchandise, presentation, customer experience and store productivity.

The early results have been encouraging. Macy's reported that its Reimagine 200 stores produced comparable-sales growth of 2.4% in Q1 2026. (Macy's Investors)

If Macy's can successfully replicate these improvements across more locations, the company could potentially stabilize its core business without having to rely exclusively on closing stores.

2026 Guidance Was Raised

Perhaps the strongest argument against the "value trap" thesis is that management raised its full-year outlook.

Following Q1 results, Macy's increased its 2026 revenue guidance to $21.5 billion–$21.75 billion, compared with the previous $21.4 billion–$21.65 billion range.

The company also raised its comparable-sales forecast to 0.5%–1.2% and adjusted diluted EPS guidance to $2.00–$2.20, up from $1.90–$2.10. (Macy's Investors)

That suggests management believes the improvement is becoming sustainable rather than simply being a short-term rebound.

The Dividend Makes MAT More Interesting

Macy's also offers investors a meaningful dividend.

For value investors, the combination of a relatively low share price and cash distributions can provide an additional component of total return.

However, investors shouldn't buy Macy's solely for its dividend. The long-term investment case depends primarily on whether management can improve the underlying retail business and generate sustainable free cash flow.

Real Estate Provides Hidden Value

One reason Macy's has attracted value investors for years is its substantial real-estate portfolio.

Some Macy's properties are located in valuable retail and urban markets, meaning the company's real-estate assets can potentially be worth more than the market gives the operating business credit for.

Management has previously used real-estate monetization as part of its broader capital-allocation strategy.

This creates an interesting situation: investors aren't necessarily buying only a department-store business. They are also getting exposure to valuable physical assets.

But the Core Macy's Business Remains Challenging

The biggest problem is still the traditional Macy's department-store business.

Consumer shopping habits have changed dramatically. Customers increasingly shop online, while discount retailers, specialty stores and luxury platforms have taken market share.

Even though Macy's comparable sales are improving, the growth rate remains modest.

The company's Q1 results showed Macy's-nameplate comparable sales rising only 1.6%, compared with much stronger performances from Bloomingdale's and Bluemercury. (Macy's Investors)

That difference is important.

The turnaround is working—but the strongest growth is coming from businesses other than the traditional Macy's department-store operation.

Tariffs Are Another Risk

Macy's also faces pressure from tariffs and the broader cost environment.

Management's 2026 guidance assumes a larger tariff impact during the first half of the year and does not include potential future tariff refunds. (Macy's Investors)

Higher product costs can pressure gross margins or force retailers to increase prices, potentially reducing demand.

This is particularly important for a company competing against discount retailers where consumers are highly price-sensitive.

The Next Earnings Report Could Be Important

Macy's is scheduled to report its second-quarter 2026 results on September 10, 2026. (Macy's, Inc.)

That report could be an important catalyst.

Investors will want to see whether:

• Comparable sales remain positive

• Reimagine stores continue outperforming

• Bloomingdale's maintains double-digit growth

• Bluemercury continues gaining momentum

• Margins remain healthy

• Management maintains its 2026 EPS guidance

If those metrics remain strong, the turnaround thesis could gain additional credibility.

Buy or Avoid?

At current levels, Macy's looks more interesting as a value/turnaround investment than as a traditional growth stock.

Bull Case

The bullish argument is:

• Comparable sales have returned to growth.

• The company has delivered four consecutive quarters of comparable-sales gains.

• Bloomingdale's is performing extremely well.

• Bluemercury is growing.

• Reimagine stores are showing encouraging results.

• 2026 guidance was raised.

• The company owns valuable real estate.

• Shareholder returns provide additional support. (Macy's Investors)

Bear Case

The bearish argument is:

• Core Macy's sales growth remains weak.

• Department-store retail remains structurally challenged.

• Tariffs could pressure margins.

• Consumer discretionary spending could weaken.

• The turnaround requires continued execution.

• Stronger-performing brands may not fully offset weakness in the traditional Macy's business.

Final Verdict

Macy's is no longer an obvious value trap, but it is also not a low-risk growth stock.

The company's recent performance provides genuine evidence that the turnaround is gaining traction. Positive comparable sales, strong Bloomingdale's performance, growing Bluemercury sales and raised 2026 guidance all strengthen the investment case. (Macy's Investors)

However, the core Macy's business still faces major structural challenges, and investors should not ignore the impact of tariffs and changing consumer behavior.

Bottom line: M looks more attractive for value-oriented investors willing to accept turnaround risk than for conservative investors seeking predictable long-term growth. The upcoming Q2 results on September 10 could be particularly important for determining whether the recent improvement is sustainable. (Macy's, Inc.)

If Macy's can maintain positive comparable sales, improve margins and continue growing Bloomingdale's and Bluemercury, the stock could have meaningful upside from depressed valuation levels. But if the core department-store business starts deteriorating again, the apparent cheapness could become a value trap.

Verdict: BUY/WATCH for aggressive value investors; WAIT for confirmation for conservative investors.

This article is for informational and educational purposes only and is not personalized financial advice.