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Macy’s reports increase in Q2 earnings, comparable sales rise 61.2 percent

By Prachi Singh

19 Aug 2021

Business

Image: Macy's media assets

Macy’s, Inc. reported diluted earnings per share of 1.08 dollars and adjusted diluted earnings per share of 1.29 dollars for the second quarter compared to a diluted loss per share of 1.39 dollars and an adjusted diluted loss per share of 81 cents in second quarter 2020. The company said this compares to diluted earnings per share and adjusted diluted earnings per share of 28 cents in second quarter 2019.

The company’s comparable sales increased 61.2 percent on an owned basis and 62.2 percent on an owned plus licensed basis versus 2020. Comparable sales were up 5.8 percent on an owned basis and up 5.9 percent on an owned plus licensed basis versus 2019.

“Second quarter results were strong across all three nameplates and surpassed our expectations. Our momentum in the first quarter accelerated in the second quarter as we successfully reengaged core customers and attracted new, younger customers with new brands and categories,” said Jeff Gennette, chairman and chief executive officer of Macy’s, Inc.

Macy’s reinstates dividend

Macy’s digital sales declined 6 percent versus second quarter 2020 and grew 45 percent versus second quarter 2019. Digital penetration was 32 percent of net sales, a 22-percentage point decline from second quarter 2020, but a 10-percentage point improvement over second quarter 2019.

Gross margin for the quarter was 40.6 percent, up from 23.6 percent in second quarter 2020 and up 180 basis points from second quarter 2019.

The company is reinstating its regular quarterly dividend at 15 cents per share on Macy’s, Inc.’s common stock, resulting in an annual return of cash to shareholders of nearly 200 million dollars. The dividend is payable on October 1, to shareholders of record at the close of business on September 15, 2021.

Macy’s raises FY22 guidance

For the full year, Macy’s expects to report net sales in the range of 23.55 to 23.95 billion dollars, adjusted diluted earnings per share in the range of 3.41 to 3.75 dollars and adjusted Ebitda as percentage of sales between 11 to 11.5 percent.

The revised outlook is compared to previous guidance of net sales between 21.73 to 22.23 billion dollars, adjusted diluted earnings per share between 1.71 to 2.12 dollars and adjusted Ebitda as a percentage of sales between 9 to 9.5 percent.