delivered wholesome gross sales progress in its newest quarter and raised its steering for the yr, positioning the retailer for a powerful vacation buying season.
Identical-stores gross sales grew 3.1% within the three months to Nov. 3. Together with licensed departments the determine elevated 3.3%.
Complete gross sales grew 2.3% to $5.Four billion. Web earnings greater than doubled to $62 million from $30 million a yr earlier, helped by asset gross sales, greater credit score earnings and decrease taxes.
Macy’s shares fell 2.4% to $34.95 in morning buying and selling. The inventory had climbed 85% over the previous yr via Tuesday’s shut.
Macy’s Chief Govt Jeff Gennette informed analysts on a convention name that the corporate was seeing improved leads to its brick-and-mortar shops in addition to e-commerce, which elevated gross sales by double-digits in contrast with a yr in the past.
He mentioned he felt assured heading into the essential year-end quarter as a result of client confidence and spending remained excessive, and plenty of of Macy’s strategic initiatives are beginning to repay.
The corporate has been investing in a bunch of shops it calls magnets, including new lighting, fixtures, a greater assortment of merchandising and technological improvements, whereas embarking on an experiment to shrink different less-promising places.
Mr. Gennette mentioned gross sales on the 50 magnet shops which have been renovated thus far this yr are operating forward of the corporate common and in some circumstances, gross sales in these shops have returned to constructive territory after a number of years of declines.
Macy’s can also be getting a carry from including its Backstage low cost idea to present department shops and rolling out new methods for customers to buy, together with permitting them to purchase on-line and choose up objects in shops. Mr. Gennette says consumers are likely to spend an extra 25% after they choose up their on-line orders in a retailer.
Two-thirds of Macy’s prospects rated their buying expertise nearly as good or superb, up from 59% a yr in the past, in line with analysis agency GlobalData Retail.
“Our knowledge additionally present that for the primary time in over eight years, the variety of folks saying they are going to go to Macy’s to do vacation buying has risen,” Neil Saunders, a GlobalData managing director mentioned.
Analysts warned that regardless of the progress within the present quarter, Macy’s faces a tricky gross sales comparability within the present quarter provided that same-store gross sales within the year-ago interval elevated 1.3%.
Macy’s raised its gross sales and earnings steering for the yr. The corporate now expects gross sales to extend 0.3% to 0.7% up from earlier steering of a flat to 0.7% enhance. Earnings per share at the moment are anticipated to be within the vary of $4.10 to $4.30 versus earlier steering of $3.95 to $4.15.
Write to Suzanne Kapner at [email protected]