Macy’s (NYSE:M) on Thursday reported fiscal second-quarter profit and revenue that topped analysts’ estimates, as customers returned to its stores to buy denim, luggage and new dresses.
The department store chain also hiked its outlook for 2021, heading into the back half of the year. Despite the ongoing uncertainty from the COVID pandemic, Macy’s said its turnaround strategy is working and drawing in new shoppers.
CEO Jeff Gennette said in a news release that momentum in the first quarter continued into the second quarter, as the retailer attracted more younger customers to shop its stores. The company said it saw five million new customers during the quarter, 41% of which came through digital.
Macy’s net income for the period ended July 31 grew to $345 million, or $1.08 per share, compared with a net loss of $431 million, or $1.39 per share, a year earlier. Excluding one-time adjustments, Macy’s earned $1.29 per share during the quarter. Analysts had been looking for 19 cents a share.
Net sales grew to $5.65 billion from $3.56 billion a year earlier. That beat estimates for $5.01 billion.
Macy’s said its comparable sales on an owned-plus-licensed basis grew 62.2% year over year, while analysts anticipated 41.1% growth.
Macy’s raised its outlook for net sales in fiscal 2021 to be in a range of $23.55 billion to $23.95 billion, up from a prior range of $21.73 billion to $22.23 billion.
Macy’s shares soared $1.65, or 9.1%, on the news to $19.72.
