Macy’s on Thursday reported fiscal second-quarter profit and revenue that topped analyst estimates, as customers returned to its stores.
The department store chain also raised its outlook for 2021, heading into the back half of the year. Despite the uncertainty from the pandemic, Macy’s said its turnaround “Polaris” strategy is working and drawing in new shoppers. The company also said it reinstated its dividend and its board approved a $500 million stock buyback program.
“Second quarter results were strong across all three nameplates and surpassed our expectations,” said Jeff Gennette, chairman and chief executive officer of Macy’s, Inc. “Our momentum in the first quarter accelerated in the second quarter as we successfully reengaged core customers and attracted new, younger customers with new brands and categories. Through the Macy’s, Inc. portfolio and our omnichannel approach, we provide a compelling, seamless integration between physical stores and digital shopping to most effectively meet the needs of our customers.”
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.
Net sales grew to $5.65 billion from $3.56 billion a year earlier. Macy’s said its comparable sales on an owned plus licensed basis grew 62.2 percent year over year. E-commerce sales were down 6 percent from a year earlier, when Macy’s stores were shut due to the pandemic and shoppers resorted to buying online. They were up 45 percent on a two-year basis and accounted for 32 percent of net sales.
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 $21.73 billion to $22.23 billion. It expects full-year adjusted earnings to be in a range of $3.41 to $3.75 per share, up from guidance of $1.71 to $2.12 a share.