Macy’s (M) reports Q1 2022 earnings beat, raises forecast
One person strolls past the Hyattsville Macys store on February 22, 2022.
AFP – Getty Images| AFP | Getty Images
Macy’sOn Thursday, the fiscal first quarter profits and sales were higher than analysts expected. This was despite decades of high inflation, which threatened to curb consumption.
Bloomingdale’s and the department store chain that owns it, the Bloomingdale’s Chain, has confirmed its fiscal 2022 outlook. They also raised their profit guidance. This means they expect stronger credit card revenue in the remaining year.
It is a member NordstromIn defiance of the wider retail trend of negative forecasts and warnings about a consumer pullback on discretionary spend, companies such as GE have risen above it. In recent days, companies including Walmart, Target, Kohl’sAnd Abercrombie & FitchThey have warned that rising labor and logistics costs will continue to impact their profit margins in the short term.
Macy’s shares surged by more than 14% after the news.
According to the retailer, 2022 sales will remain flat or increase by 1% over 2021. That would translate into a range from $24.46 billion up to $24.7 million.
The company now projects earnings on an adjusted basis between $4.53 to $4.95 per shared, up from the prior range of $4.13 – $4.52.
Jeff Gennette, chief executive officer of the company said that while macroeconomic pressures increased on consumer spending during the quarter but customers continued to shop. Gennette stated that there was a trend in consumers shopping for clothing to suit special occasions, such as dresses for women and men’s clothes.
This is how Macy’s got it done in its fiscal first quarterThis is compared to what Wall Street had in mind based upon a Refinitiv survey of analysts.
- Earnings per share: $1.08 adjusted vs. 82 cents expected
- Revenue: 5:35 billion, vs. the $5.33 billion anticipated
Macy’s net income for the three months ended April 30 was $286million, which is 98c per share. This compares with Macy’s net income last year of $103million, 32cs per share.
It earned $1.08 per Share, excluding one-time items. This exceeded analysts’ expectations of adjusted earnings per share at 82 cents.
Analysts’ predictions were also exceeded by revenue growth of $5.35 Billion from $4.71 Billion in the previous year.
Digitized sales increased by 2% and accounted for 33% of the quarter’s net sales. The retailer reported that it now had 44.4million active customers. That’s 14% more than the previous year. It was helped by Macy’s loyalty programme, which allowed them to attract more people into their stores.
The same-store sales in both licensed and owned stores increased 12.4% over the previous year. Refinitiv polled analysts expecting a 13.3% rise.
Macy’s April 30, 2019 inventory levels were 17% higher than the previous year, and 10% lower than those of 2019.
Macy’s stated that these levels had been slightly exaggerated as customers shifted from casual and active wear to homeware. It also said that supply chain restrictions were less tightened in the fourth quarter. This resulted in higher inventory receipts than Macy’s had anticipated.
This is a developing story. Keep checking back for more updates.