Macy's jumps 22% after huge earnings beat as Americans shake off COVID-19 fears and return to in-store shopping

View from Macy's Herald Square, New York. Noam Galai/Getty Images
Macy's surged to a record high of more than two years after it posted second quarter earnings that exceeded expectations.

It also increased its guidance for the year, as more vaccinated Americans shop in-store.

The department store announced a partnership with Macy's that will see Toys "R", Us return to Macy's stores by 2020.

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Macy's shares surged as high as 22% to more than two-year highs on Thursday, as Macy's posted second quarter earnings that beat expectations. The department store chain also raised its guidance for the year after it reported higher-than-expected results.

On Thursday, the stock surged 22.65% and reached $22.17 at 1:28 p.m. ET. It traded 18.40% higher at $21.40, as of 2:28 p.m. ET.

According to the company, same-store sales jumped 62% during the quarter. The company also announced that it will reinstate its quarterly dividend at 15c per share, and its board-approved 500 million stock buyback program.

The second quarter saw Macy's momentum accelerate thanks to a reengaged customer base, new shoppers and fresh brands, CEO Jeff Gennette stated in a statement.

He said, "Through our Macy's, Inc. portfolio, and our Omnichannel approach, we provide compelling, seamless integration of physical stores and online shopping to most effectively address the needs of customers."

On Wednesday, the company posted a net profit of $345 million or $1.08 per sy, up from a loss of $431million or $1.39 per sy in the same period last fiscal year.

Macy's adjusted earnings for the quarter were $1.29 per Share, excluding any one-time adjustments. Refinitiv analysts expected $0.19 per share.

The revenue rose nearly 60% to $5.65 Billion, up from $3.56 Billion in the same period last fiscal year. This beat analyst estimates of $5.01 Billion.

Macy's has increased its net sales outlook from $21.73 billion - $22.23 billion, to $23.55 billion -

Full-year adjusted earnings are expected to be $3.41-$3.75 per shares, an increase of $1.71-$2.12 per share.

On Thursday, the company also announced a partnership agreement with WHP Global in order to bring Toys "R" Us back into its stores. Online shoppers can shop for toys at the chain of toy stores and purchase them in more than 400 Macy's locations nationwide by 2022.

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