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Macy's posts profit, raises full year forecast

By Prachi Singh

18 May 2021

Business

Image: Macy's newsroom

Macy’s For the first quarter, Macy’s Inc. reported diluted earnings per share of 32 cents and adjusted diluted earnings per share of 39 cents. The company said, adjusted diluted earnings per share for the quarter exceeded first quarter 2019 by 4 cents. The company’s posted net income of 103 million dollars. Excluding asset sale gains, comparable sales rose 62.5 percent on an owned basis and up 63.9 percent on an owned plus licensed basis versus 2020.

Macy’s now expects full year net sale in the range of 21.73 to 22.23 billion dollars, adjusted diluted earnings per share in the range of 1.71 to 2.12 dollars and adjusted EBITDA as a percent of sales in the range of 9 percent to 9.5 percent.

“In our first quarter we outperformed sales expectations across all three of our brands: Macy’s, Bloomingdale’s and Bluemercury. We built on our momentum from the fourth quarter and our sales trend continued to improve throughout the first quarter,” said Jeff Gennette, chairman and chief executive officer of Macy’s, Inc.

The company’s digital sales grew 34 percent over first quarter 2020 and grew 32 percent over first quarter 2019. Digital penetration was 37 percent of net sales, a 6-percentage point decline from first quarter 2020 when stores closed, but a 13-percentage point improvement over first quarter 2019.

Gross margin for the quarter was 38.6 percent, up from 17.1 percent in first quarter 2020 and up 40 basis points from first quarter 2019.