Macy’s reports surprise profit, raises full-year outlook

Macy’s reported a surprise fiscal first-quarter profit, as shoppers returned to stores to refresh their wardrobes.

Macy’s reported a surprise first-quarter profit Tuesday as stimulus checks and the coronavirus vaccine rollout have given consumers more money and greater confidence to head out shopping.

During the quarter, Macy’s swung to a profit of $103 million, or 32 cents per share, compared with a loss of $3.6 billion, or $11.53 per share, a year earlier.

Excluding one-time charges for impairment and restructuring, the early retirement of debt and income tax impact, Macy’s earned 39 cents per share. Analysts were looking for a 41 cent loss, according to a survey from Refinitiv.

Net sales grew to $4.71 billion from $3.02 billion a year earlier. That exceeded expectations for revenue of $4.37 billion.

Macy’s raised its full-year forecast on the back of the results, saying it’s seeing momentum as consumers head to its shops and go online to buy new outfits for weddings, travel and other special occasions.

Luggage was one of the most improved categories year over year, said CEO Jeff Gennette on the earnings call, adding, “Clearly our customer is ready to get on with life.”