A man walks past the Macys store in Hyattsville, Maryland, on February 22, 2022.
Stephanie Reynolds AFP | Getty Images
Macy’s on Thursday reported first-quarter fiscal gains and sales ahead of analysts’ expectations as shoppers returned to malls to shop for new clothing, luggage and luxury goods, despite decades of high inflation that threatened to curb consumption.
The department store chain, which also owns Bloomingdale’s, reaffirmed its sales forecasts for fiscal 2022 and raised its earnings targets, expecting higher credit card revenue for the rest of the year.
He joins Nordstrom in overcoming the broader trend in the retail industry of poor forecasts and warnings of consumer withdrawal in terms of discretionary costs. In recent days, companies including Walmart, Target, Kohl’s and Abercrombie & Fitch have warned that higher logistics and labor costs will continue to eat away at their profits in the near future.
Shares of Macy’s jumped more than 14% in market trading after the news.
The retailer still expects revenue for 2022 to be up to 1% compared to 2021 levels, which will range from $ 24.46 billion to $ 24.7 billion.
He now forecasts earnings, adjusted on an adjusted basis, between $ 4.53 and $ 4.95 per share, compared to the previous range of $ 4.13 to $ 4.52.
“As macroeconomic pressure on consumer spending increased during the quarter, our customers continued to shop,” CEO Jeff Janet said in a press release. He added that the company has seen a change among consumers back to stores and to clothing for special occasions such as women’s dresses and tailored men’s items.
Here’s how Macy’s fared in its first fiscal quarter compared to what Wall Street expected, according to a survey by analysts at Refinitiv:
- Earnings per share: $ 1.08 adjusted for expected 82 cents
- Revenue: $ 5.35 billion against the expected $ 5.33 billion
For the three-month period ended April 30, Macy’s reported a net profit of $ 286 million, or 98 cents a share, compared to a net profit of $ 103 million, or 32 cents a share, a year earlier.
Excluding one-off items, it earned $ 1.08 per share, beating analysts’ expectations for adjusted earnings per share of 82 cents.
Revenue rose to $ 5.35 billion from $ 4.71 billion a year ago, which also exceeds analysts’ estimates.
Digital sales rose 2%, representing 33% of net sales for the quarter. The retailer said it had 44.4 million active customers, up 14 percent from the previous year, aided by Macy’s loyalty program, which has helped attract more people online and in stores.
Sales in the same store for both owned and licensed stores increased by 12.4% compared to the previous year. Analysts surveyed by Refinitiv sought an increase of 13.3%.
Macy’s inventory levels as of April 30, which increased by 17% compared to the previous year and decreased by 10% compared to 2019 levels.
Macy’s said these levels were somewhat inflated as buyers turned away from buying active and casual wear as well as home goods. Supply chain constraints also eased during the quarter, he said, leading to a higher rate of inventory revenue than the retailer expected.
This story is evolving. Please check again for updates.
Add Comment