Macy’s (NYSE:M) on Tuesday reported a surprise first-quarter profit, as stimulus cheques and the ongoing COVID vaccine rollout put more money in the pockets of consumers, and greater confidence in their hearts to head back to the mall and refresh their wardrobes.
The department store chain raised its full-year forecast, saying it’s seeing momentum as consumers head to its shops and go online to buy new outfits for weddings, travel and other special occasions.
During the latest period, luggage was one of the most-improved categories year over year, Chief Executive Jeff Gennette said. "Clearly our customer is ready to get on with life."
During the quarter ended May 1, Macy’s swung to a profit of $103 million, or 32 cents per share, compared with a loss of $3.6 billion, or $11.53 per share, a year earlier.
Excluding one-time charges for impairment and restructuring, the early retirement of debt and income tax impact, Macy’s earned 39 cents per share. Analysts were looking for a 41-cent loss.
Net sales grew to $4.71 billion from $3.02 billion a year earlier. That exceeded expectations for revenue of $4.37 billion.
In the year-ago period, Macy’s sales tumbled 45% as the Covid pandemic forced its stores temporarily shut and shoppers shifted their spending toward groceries and cleaning supplies, and away from clothing and footwear.
In the latest period, comparable sales rose 62.5%, topping estimates for 44.9% growth.
M shares advanced 32 cents, or 1.7%, to $19.48.
