By Senad Karaahmetovic

Shares of Macy’s (NYSE:) are up nearly 15% today after the retailer raised its adjusted EPS outlook for the full year, topping the analyst consensus.

Q1 adjusted earnings per share of the company were $1.08 in Q1, an increase of 39c/share over the previous year and higher than the consensus projections of 83c/share. In the same period net sales grew 14% to $5.35 billion.

“Our company delivered solid results in the first quarter despite a challenging operating environment,” the company said.

“We believe that our first quarter performance reflects the durability of the Polaris strategy.”

The adjusted FY 2023 EPS guidance was increased to $4.53-$4.95, up from previous estimates of $4.13-4.52. Analysts had expected $4.36 per share. Macy’s expects FY sales to grow between 0% and 1%, and anticipates FY net sales in the range of $24.46 billion to $24.70 billion, compared to the consensus estimates of $24.55 billion.

Company noted that there is a high demand for both occasion- and in-store shopping. They also expect a steady demand for luxury products.

Goldman Sachs analyst Jenna Giannelli said the results are “a bright spot among retailers this earnings season, and also noteworthy was the healthier inventory to sales growth vs. peers exiting the quarter.”

“The company called out trends consistent with other retailer commentary, including increased macro pressure on consumer spend, but strength in luxury goods and occasion based apparel, driving favorable mix. We think the market reaction should be positive after underperformance in the structure year-to-date,” Giannelli wrote to clients shortly after the results were released.