NEW YORK - Macy's posted its fourth consecutive quarter of comparable sales growth as the retailer credited merchandise updates and stronger customer service for connecting with shoppers.

The New York-based company raised its annual outlook on Wednesday with shares climbing more than 3 percent ahead of the market open.

"We are off to a strong start to the year," said CEO Tony Spring, now in his third year leading the turnaround effort at the iconic retailer. "We are operating with discipline and focusing on what matters most - our customers."

Comparable sales at established stores and online channels rose 3 percent in the first quarter. This topped the 1.8 percent gain from the prior year's final quarter and marked the best first-quarter result in four years, according to the company. Macy's locations saw a 1.6 percent comparable sales rise while Bloomingdale's achieved a 10.2 percent increase, its highest first-quarter volume ever. Bluemercury, the cosmetics chain under Macy's, recorded a 6.4 percent comparable sales gain.

This marks another positive step for Macy's after years of sales declines. Since Spring assumed leadership in early 2024 the company has shuttered underperforming locations and invested millions to update remaining stores while strengthening service and adding exclusive luxury items to stand out from competitors.

Retail analysts link some of Bloomingdale's strong results to the Chapter 11 bankruptcy filing by Saks Global, parent of Saks Fifth Avenue and Neiman Marcus.

Macy's still faces the broader pressures affecting the entire retail sector.

U.S. retailers continue to navigate economic uncertainty including tariffs under President Donald Trump and higher gasoline costs tied to the Iran conflict. Regular gasoline has averaged above $4 per gallon since March per AAA data and costs 40 percent more than before the conflict began. Recent earnings from major chains show shoppers feeling the squeeze from elevated prices on fuel, food, utilities and other essentials.

Spring told The Associated Press in a Wednesday call that the company is watching developments closely due to economic uncertainty yet has seen no clear drop in spending since gas prices climbed.

He pointed to Macy's stronger product mix and value perception resonating with buyers. Strong categories include prom dresses, men's shoes, dresses and fragrances though furniture sales lagged as customers delay big-ticket buys.

"Despite the selective consumer and all the geopolitical and macroeconomic factors we read about daily fashion newness and the desire to indulge remain active," Spring told The AP. "We are very pleased that we are taking share."

Spring noted higher-income shoppers continue spending freely aided by stock market gains while middle-income buyers stay selective. Lower-income customers remain challenged but focus on Macy's heavily discounted sections.

Macy's reported net income of $63 million or 23 cents per share for the quarter ended May 2. Adjusted earnings per share reached 13 cents beating Wall Street estimates by a dime according to FactSet.

This compares to a $38 million profit or 13 cents per share in the prior-year period.

Net sales increased to $4.68 billion from $4.6 billion a year earlier with revenue also topping analyst projections.

The company now projects annual net sales between $21.5 billion and $21.75 billion up from earlier guidance of $21.4 billion to $21.65 billion issued in March. It raised comparable sales expectations to a gain of 0.5 percent to 1.2 percent versus the prior forecast of a 0.5 percent decline to a 0.5 percent increase.

Macy's also lifted full-year earnings per share guidance to a range of $2 to $2.20 from the previous $1.90 to $2.10 outlook.

Analysts had projected $2.09 per share on revenue of $21.6 billion for the year according to FactSet.