"They're not in our categories to the degree that we would have expected them to be at this point in time, and we're seeing that throughout the fashion retail industry," he told CNBC's "Squawk on the Street."
"It's just a matter of time. When they've got their house, they've got their room extension, they've got their automobile, they're still going to have savings left over, so we forecast our own sales to be positive into the fourth quarter," Lundgren said.
For its latest reporting period, Macy's same-store sales were down 4.3 percent. At the time, Lundgren pointed to the negative impact of warm winter weather on apparel sales and lackluster tourist spending at its flagship store as the dollar strengthened.
In January, the retailer said it would cut thousands of jobs in a bid to reduce costs after a disappointing 2015. Shares of Macy's are down 40 percent over the past 12 months.
The company is also facing competition from fast-fashion stores like H&M that specialize in up-to-the-minute styles at low prices.
Lundgren said Macy's would compete on that front with several new "lower price, great value" lines, but would maintain a "certain quality standard" to set them apart.
He noted that Macy's continues to see strength in athletic apparel and footwear, particularly among millennials.