Macy's on Thursday reported fiscal first-quarter profits and sales ahead of analysts' expectations, as shoppers returned to malls to shop for new outfits, luggage and luxury goods in spite of decades-high inflation that has threatened to curtail consumption.
The department store chain, which also owns Bloomingdale's, raised its profit guidance, expecting better credit card revenue for the rest of the year.
It is bucking a trend in the retail industry of downbeat forecasts and warnings of a consumer pull back on discretionary spending. In recent days, companies such as Walmart, Target, and Kohl's have warned that higher expenses on labor and logistics will eat into their profits in the near term.
Macy's shares jumped more than 14% in premarket trading on the news.
The retailer still expects revenue to be flat to up 1% in 2022, which would be a range of $24.46 billion to $24.7 billion.
It now expects earnings on an adjusted basis to be between $4.53 and $4.95 per share, up from a previous range of $4.13 to $4.52.
Chief Executive Officer Jeff Gennette said in a press release that macroeconomic pressures on consumer spending increased during the quarter. He said that the company saw a shift among consumers back into stores and toward clothing for special occasions such as women's dresses and tailored men's items.
Here is how Macy's did in its fiscal first quarter compared with what Wall Street was anticipating, based on a survey of analysts.
Macy's reported net income of $286 million, or 98 cents per share, for the three-month period ended April 30, compared with net income of $103 million, or 32 cents a share, a year earlier.
Excluding one-time items, it earned $1.08 per share, topping analysts' expectations for adjusted earnings per share of 82 cents.
Revenue grew to $5.35 billion from $4.71 billion in the year-ago period, also topping analysts' forecast.
Digital sales made up 32% of net sales for the quarter. Macy's loyalty program helped to draw more people online and into stores, as the retailer said it had 44.4 million active customers.
Same-store sales for its owned and licensed stores grew in the previous year. Analysts had been looking for a 13.3% increase.
Macy's reported inventory levels as of April 30 were up 17% from the prior year and down 10% from the previous year.
Macy's said that the levels were inflated as shoppers shifted away from buying active and casual wear. Supply chain constraints loosened over the quarter, which resulted in a higher percentage of inventory receipts than the retailer had expected.
There is a developing story. You can check back for updates.
All Rights Reserved © 2024
