Macy’s on Thursday posted growth across the company in its second fiscal quarter and raised its guidance as it continues its turnaround.
The retailer said overall comparable sales rose 2.7% for the quarter, with comparable sales for its namesake brand up 1.1%. The company said that growth was largely driven by its so-called reimagined stores, locations it has revamped as one of the focuses of its turnaround.
Macy’s said its higher-end store line Bloomingdale’s saw an 11.3% increase in comparable sales, while beauty brand Bluemercury was up 6.2%.
“We’re creating, I think, performance beyond just one quarter,” CEO Tony Spring told CNBC. “This is now six quarters of better-than-expected top line and bottom line performance, five quarters of comparable sales growth, two quarters of net sales growth.”
The company also raised its full-year guidance and now projects net sales to be between $21.68 billion and $21.83 billion, compared to a prior expectation of between $21.5 billion and $21.75 billion. It also raised its comparable sales outlook range from between 0.5% and 1.2% growth to a 1% to 1.5% increase.
Macy’s hiked its full-year earnings per share outlook to a range of $2.15 to $2.35, up from $2 to $2.20. It said that included a roughly 5 cent per share bump from tariff repayments it will apply to its bottom line.
The retailer reported that it has received a total of $116 million in tariff refunds, and will invest most of that — about $96 million — in the customer experience and its turnaround plan.
Here’s how the company performed in its second fiscal quarter compared with what Wall Street was anticipating, based on a survey of analysts by LSEG:
Earnings per share: 40 cents adjusted; it was not immediately clear if that was comparable to the 37 cents expectedRevenue: $4.87 billion vs. $4.83 billion expected
The company reported net income of $169 million, or 62 cents per share, compared to $87 million, or 31 cents per share, the year prior. Adjusting for one-time items, Macy’s reported earnings per share of 40 cents.
Sales rose to roughly $4.87 billion, up just slightly from $4.81 billion the year prior.
The company added that credit card revenue was up 2%, or $3 million, for the quarter, due to what it called a “healthy credit portfolio and stable net credit card losses.”
Macy’s is nearing the end of a three-year turnaround plan under CEO Tony Spring that aims to spark growth and invest in locations that perform well against a challenging backdrop for department stores. Spring told CNBC last quarter that the company was seeing strong consumer behavior despite a challenging macroenvironment.
