The shares of Macy’s are rallying today after the company reported better-than-expected earnings in the second quarter of the fiscal year.
Macy’s Q2 Earnings Trump Estimates
Leading departmental store, Macy’s, reported its second-quarter earnings today and the company performed above expectations. According to the company’s report, the adjusted earnings per share in the second quarter was $1.29, significantly higher than the 19 cents that were expected.
The revenue was also above the analysts’ estimation. Macy’s revenue in the second quarter of 2021 was $5.65 billion vs. $5.01 billion expected. The performance in the second quarter is a continuation of what was experienced, with the Coronavirus restrictions easing in several parts of the United States.
CEO Jeff Gennette pointed out that the company has rolled out numerous new strategies, and they have helped them attract younger people to the stores. Macy’s said it recorded 5 million new customers in Q2, with 41% of them coming through the digital channels.
Macy’s net income during the second quarter was $345 million, or $1.08 per share, compared with a net loss of $431 million, or $1.39 per share, in the same quarter last year. The net sales of $5.65 billion are nearly 90% higher than the $3.56 billion recorded a year earlier.
E-commerce remains a challenging area for Macy’s, with sales in this area down 6% from last year. Thanks to this latest performance, Macy’s has raised its outlook for net sales this year. The company expects to make between $23.55 billion and $23.95 billion, up from the previous of between $21.73 billion to $22.23 billion.
The full-year earnings per share expectations have been increased to the range of $3.41 to $3.75 a share, up from previous guidance of $1.71 to $2.12 per share.
Macy’s Stock Price Up By 15%
Macy’s stock price has been rallying at Thursday’s pre-market trading session. M is up by 15% over the past few hours, with the market reacting to the company’s latest earnings report. At the time of this report, Macy’s stock price is at $20.
Year-to-date, M is one of the best-performing stocks in the market as it is up by nearly 100%. Macy’s began 2021 trading at $11 per share, but it is now trading close to $21.