Macy’s raises full-year outlook after sales growth in second quarter
Department store chain Macy’s reported improved performance in the second fiscal quarter and raised its full-year outlook. As CNBC Top News reports, the company’s comparable sales rose 2.7% during the quarter, while sales at the Macy’s namesake chain increased by 1.1%.
Financial results
Macy’s revenue amounted to about $4.87 billion, slightly above $4.81 billion in the same period a year earlier. This figure exceeded the expectations of analysts surveyed by LSEG, who had forecast revenue of $4.83 billion.
The company’s net income increased to $169 million, or 62 cents per share, compared with $87 million, or 31 cents per share, a year earlier. Macy’s adjusted earnings were 40 cents per share. Credit card income increased by 2%, or $3 million, which the company attributed to a healthy credit portfolio and stable net credit card losses.
Updated outlook
The company expects its full-year net sales to range from $21.68 billion to $21.83 billion. Its previous forecast called for a range of $21.5 billion to $21.75 billion.
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Macy’s also raised its expectations for comparable sales growth from 0.5–1.2% to 1–1.5%. Its earnings-per-share forecast was raised from $2–$2.20 to $2.15–$2.35. The company said this outlook includes approximately 5 cents per share from tariff refunds.
Bloomingdale’s increased comparable sales by 11.3%, while cosmetics brand Bluemercury posted a 6.2% increase. Macy’s said growth was largely driven by revamped stores under a three-year transformation plan led by CEO Tony Spring.
The retailer received a total of $116 million in tariff refunds. Macy’s plans to direct about $96 million of that amount toward improving the customer experience and implementing its transformation program.
