Macy's Makes a Comeback Stock Skyrockets After Blowout Sales!

Macy's Stock Soars as 'Omni-Channel' Retailer's Comparable Sales Unexpectedly Rise

In a surprising turn of events, Macy's (M) shares experienced a significant surge, jumping nearly 20% on Wednesday. This impressive leap followed the release of the department store chain's latest financial results, which exceeded expectations and prompted an optimistic revision of the company's outlook.

The positive performance was fueled by solid demand across Macy's various store formats, including its "Reimagine" locations, Bloomingdale's, and Bluemercury. Let's delve into the key highlights:

• Exceeded Expectations: Macy's surpassed both profit and sales forecasts.
• Comparable Sales Growth: Comparable sales saw an increase across Macy's and its "Reimagine" stores, as well as Bloomingdale's and Bluemercury locations.
• Revised Outlook: Macy's has raised its full-year adjusted earnings per share and sales forecasts.

Macy's reported second-quarter adjusted earnings per share of $0.41, significantly exceeding the Visible Alpha analyst consensus. While revenue saw a slight year-over-year decrease of nearly 2% to $5.0 billion, it still managed to surpass forecasts. Notably, comparable sales were up 0.8%, a stark contrast to the anticipated decline of 0.3%.

A closer look at the store performance reveals the following:

• Macy's stores experienced a 3.8% decrease in sales, but comparable store sales rose 0.4%.
• The 125 "Reimagine" stores saw a 1.1% increase in comparable sales.
• Bloomingdale's demonstrated strong growth with a 4.6% increase in sales and a 3.6% increase in comparable sales.
• Bluemercury also performed well, with sales up 3.3% and comparable sales up 1.2%.

Macy's attributed part of its success to effective cost-cutting measures. The company successfully reduced selling, general, and administrative expenses by $29 million, bringing the total to $1.9 billion. This reduction was achieved through a combination of Macy's store closures and strategic cost-cutting initiatives.

CEO Tony Spring highlighted the company's impressive performance, stating that Macy's achieved its strongest comparable sales growth in 12 quarters. He further emphasized the company's "advantages of being a multi-brand, multi-category, omni-channel retailer."

Macy's Lifts Full-Year Adjusted EPS, Sales Projections

Buoyed by its strong performance, Macy's has revised its full-year outlook. The company now projects adjusted EPS of $1.70 to $2.05, an increase from its previous forecast of $1.60 to $2.00. Sales are now anticipated to be in the range of $21.15 billion to $21.45 billion, compared to the prior expectation of $21.0 billion to $21.4 billion.

Despite the recent surge, it's worth noting that Macy's shares remain more than 5% lower year-to-date.

In conclusion, Macy's impressive rebound underscores the resilience and adaptability of established retailers in the face of evolving market dynamics. The company's strategic focus on omni-channel retailing, coupled with effective cost management, appears to be paying dividends. While challenges undoubtedly remain, Macy's latest performance offers a compelling glimpse into a potentially brighter future.

Tags: Macy's, Retail sales, Earnings, Stock market, Financial results, Business news, Bloomingdale's, Bluemercury, Sales forecast, Company revenue, Omni-channel retail

Source: https://finance.yahoo.com/news/macys-stock-soars-omni-channel-140751950.html