By Dhirendra Tripathi
Investing.com – Macy’s stock (NYSE:M) jumped 11% in Thursday’s premarket as ts third-quarter report suggested that the department store chain has emerged from the pandemic stronger, despite widespread and long closures of many of its stores.
Sales and earnings both blew past estimates and the retailer raised its guidance for the full year once more, after attracting 4.4 million new customers through the three months ended October 30, on top of the 5 million it added in the second quarter.
The company now expects its full-year net sales to be $24.20 billion at the midpoint of its guidance range, up from $23.75 billion previously. Average customer spending rose 16% across three segments of its loyalty program -- platinum, gold and silver.
Both total net sales and comparable sales rose 36%. Net sales were $5.44 billion. Adjusted profit per share increased more than four times to $1.23, and was also up sharply from two years ago, the last comparable pre-pandemic number.
Separately, Macy's said it will launch a curated online marketplace to cement the gains it has made in e-commerce over the last couple of years.
The company said sales of home goods, fragrances, jewelry, watches and sleepwear had been particularly strong, along while occasion-based items such as dresses, men’s tailoring and luggage also held up well.
Digital sales reversed their second-quarter fall, growing 19%. Despite this, digital sales as a percentage of total sales, fell by 5 percentage points year-on-year as more consumers returned to shop in person at its department stores.