Macy’s reported its strongest fiscal first-quarter comparable sales performance in four years, indicating progress in the department store’s turnaround strategy. The company saw a 3% overall increase in comparable sales during the quarter, with a 1.6% rise at its namesake stores.
Bloomingdale’s experienced a 10.2% growth in comparable sales, attributed to popular brands and the recent bankruptcy of competitor Saks Fifth Avenue, according to CEO Tony Spring. He acknowledged the marketplace disruption’s impact but noted it was not the sole reason for sales growth.
Following better-than-expected sales and profitability, Macy’s raised its full fiscal-year guidance. The company now projects 2026 net sales between $21.5 billion and $21.75 billion, surpassing previous expectations of $21.59 billion. Adjusted earnings per share are expected to range from $2 to $2.20, an increase from earlier forecasts.
Macy’s also adjusted its outlook for comparable sales growth for the year to between 0.5% and 1.2%, improving from a prior expectation of a potential decline.
Shares of Macy’s rose more than 2% in premarket trading following the announcement. Some retailers have reported strong growth recently, partly due to higher-than-usual tax refunds. However, there are concerns that less economic stimulus could affect demand.
Spring noted that while tax refunds contributed to the first quarter’s success, ongoing trends suggest consistent performance into the second quarter. He emphasized no significant changes in consumer behavior, prompting the company to revise its outlook despite economic uncertainties.
In its fiscal first quarter, Macy’s reported earnings per share of 13 cents adjusted, exceeding the expected 3 cents. Revenue reached $4.68 billion, also surpassing projections of $4.61 billion. The net income for the quarter was $63 million, or 23 cents per share, up from $38 million, or 13 cents per share, a year earlier.
The company’s sales rose by approximately 2% from $4.60 billion reported in the same period last year. Macy’s is at the midpoint of a three-year turnaround plan led by Spring, which includes closing underperforming stores and reinvesting in locations deemed valuable.
Spring highlighted the focus on essential retail practices, such as adequate staffing and customer-friendly environments. He stated, “We’re not doing the fancy stuff, we’re doing the stuff that makes the biggest difference in the business,” affirming the company’s commitment to product quality and customer service.
Source: www.cnbc.com via Google News.
