Macy’s (M) reports Q1 2022 earnings beat, raises forecast

Macy’s On Thursday, shoppers returned to the mall to buy new clothes, luggage, and luxury goods for decades, reporting profits and sales for the first quarter of accounting before analysts expected. Did-high inflation threatening to reduce consumption.

The department store chain, which is also owned by Bloomingdale’s, reaffirms its 2022 sales outlook, raises its profit forecasts, and expects credit card revenue to increase for the rest of the year.

Will join Nordstrom By countering the broader trend of weak forecasts and warnings of consumer recession in discretionary spending in the retail industry. recently, Walmart, Goal, Coles When Abercrombie & Fitch The higher costs of logistics and labor warn that they will continue to cut into their interests in the near future.

Macy’s shares surged more than 14% in news pre-market transactions.

Retailers expect 2022 revenue to remain flat at 1% compared to 2021 levels. This ranges from $ 24.46 billion to $ 24.7 billion.

Adjusted revenue is currently projected to be between $ 4.53 and $ 4.95 per share, up from the previous $ 4.13 to $ 4.52 range.

“There was increasing macroeconomic pressure on consumer spending during the quarter, but customers continued to shop,” CEO Jeff Jennet said in a press release. The company added that it is returning to the store among consumers and shifting to clothing for special occasions such as women’s dresses and tailored men’s items.

This is Macy’s way In the first quarter of that accounting Compared to what Wall Street expected, based on an analyst survey by Refinitiv:

• Profit per share: $ 1.08 adjusted 82 cents forecast
• Revenue: Forecast of $ 5.35 billion vs. $ 5.33 billion

For the three months ending April 30, Macy’s reported $ 286 million (per share) compared to $ 103 million (32 cents per share) net income a year ago. It was a net profit of 98 cents).

Excluding the one-off item, revenue per share was $ 1.08, which is higher than analysts expect adjusted earnings per share to be 82 cents.

Revenues increased from $ 4.71 billion in the year-ago quarter to $ 5.35 billion, exceeding analysts’ expectations.

Digital sales increased by 2%, representing 33% of quarterly net sales. The retailer said it has 44.4 million active customers, up 14% year-on-year, backed by Macy’s loyalty programs that helped attract more people online and in stores.

Same-store sales and same-store sales Same-store sales increased 12.4% year-on-year. Analysts surveyed by Refinitiv were looking for a 13.3% increase.

Macy’s inventory levels on April 30 were up 17% year-on-year and down 10% year-on-year.

According to Macy’s, these levels have risen slightly as shoppers have shifted away from active purchases of casual wear and household items. Supply chain constraints were also eased this quarter, resulting in a higher percentage of inventory receipts than retailers expected, he said.

This story is developing. Please check for updates.