Macy’s (NYSE:M) on Thursday reported fiscal first-quarter profits and sales ahead of analysts’ expectations, as shoppers returned to malls to shop for new outfits, luggage and luxury goods in spite of decades-high inflation that has threatened to curtail consumption.
The department store chain, which also owns Bloomingdale’s, reaffirmed its fiscal 2022 sales outlook and raised its profit guidance, expecting stronger credit card revenue for the remainder of the year.
It joins Nordstrom (NYSE:JWN) in bucking a broader trend in the retail industry of downbeat forecasts and warnings of a consumer pullback on discretionary spending. In recent days, companies including Walmart (NYSE:WMT), Target (NYSE:TGT), Kohl’s (NYSE:KSS) and Abercrombie & Fitch (NYSE:ANF) have cautioned that higher expenses on logistics and labour will continue to eat into their profits in the near term.
For the three-month period ended April 30, Macy’s reported net income of $286 million, or 98 cents per share, compared with net income of $103 million, or 32 cents a share, a year earlier.
Excluding one-time items, it earned $1.08 per share, topping analysts’ expectations for adjusted earnings per share of 82 cents.
Revenue grew to $5.35 billion from $4.71 billion in the year-ago period, also topping analysts’ forecast.
Macy’s shares soared $2.77, or 14.4% to $21.98, in early Thursday n trading on the news.
The retailer still expects 2022 revenue to be flat to up 1% compared with 2021 levels, which would be a range of $24.46 billion to $24.7 billion.
It now projects earnings, on an adjusted basis, between $4.53 and $4.95 per share, up from a prior range of $4.13 to $4.52.
