U.S. department store chain Macy’s (M) has reported quarterly financial results that surpassed Wall Street’s expectations and raised its forward guidance.
The New York-based company posted earnings per share (EPS) of $0.40 U.S., which beat the $0.37 U.S. that had been anticipated among analysts.
Revenue in what was the year’s second quarter totaled $4.87 billion U.S., which topped the consensus estimate that called for sales of $4.83 billion U.S.
Total sales were up 1% from a year earlier, while overall comparable sales rose 2.7% year-over-year during the quarter.
Macy’s higher-end store line Bloomingdale’s saw an 11.3% increase in comparable sales from a year ago, and beauty brand Bluemercury saw sales increase 6.2%.
The retailer’s latest financial results were given a boost from $116 million U.S. in tariff refunds. Management said they plan to invest most of that in the company’s ongoing turnaround plan.
In terms of guidance, Macy’s management team said they now expect sales of $21.68 billion U.S. to $21.83 billion U.S. for the entire year.
That outlook is up from previous guidance that called for sales of $21.50 billion U.S. to $21.75 billion U.S.
Macy’s also raised its full-year earnings outlook to between $2.15 U.S. and $2.35 U.S. a share, up from $2 U.S. to $2.20 U.S. previously.
Macy’s is nearing the end of a three-year turnaround strategy that aims to increase growth and revitalize its store locations.
The company has faced a challenging operating environment for department stores since the Covid-19 pandemic struck in 2020, driving consumers to shop online.
M stock was up 4% in premarket trading on Sept. 10 following the company’s latest financial results. Over the past 12 months, the share price has risen 26% to $21.51 U.S.
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