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Macy’s emerges from a pandemic by swinging to surprise profits

Macy’s emerged from an unprecedented year and surprisingly returned to the profit line, boosting guidance for 2021 as a whole.

According to the company, sales have increased as a result of government stimulus checks and a large-scale rollout of vaccines that have made Americans bold to go outdoors again.

Stock prices soared 7% before the opening bell on Tuesday.

“There are promising signs that core customers are shopping again. We continue to attract new customers and are beginning to experience more and more online shopping,” said CEO Jeff Jennet. I am.

Sales of products that were strong during the pandemic, such as household items, continue to be strong, and customers are spending more on other categories, Jennet said.

Net profit reached $ 103 million after making a major loss when the store was forced to close the door around the same time last year.

On a per-share basis, the New York company’s net profit was 32 cents, or 39 cents if the one-time rate was removed. According to a Zacks Investment Research study, when Wall Street sought a loss of about 41 cents per share, the combined earnings and costs were 39 cents per share.

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Revenue of $ 4.71 billion also exceeded analysts’ expectations.

Macy’s expects full-year sales to range from $ 21.73 billion to $ 22.23 billion, up from the previous forecast of $ 19.75 billion to $ 20.75 billion.

Macy’s drives much of its sales online and expects digital sales to reach $ 10 billion within the next three years, but online sales are two to three times higher in markets where Macy’s stores are located. Stated.

During the pandemic, the company reduced inventories and closed several stores. Last year, we launched a curve side pickup to expand the back stage of the off-price concept.

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Follow Anne D’Innocenzio: http://twitter.com/ADInnocenzio

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Macy’s emerges from a pandemic by swinging to surprise profits

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