The company merged with other top retailers, including Kohl’s Corp (NYSE: KSS) and Target Corp (NYSE: TGT), in the notice of an impact on profitability in recent weeks, as skyrocketing prices of everyday goods made Americans mindful of spending on apparel and other discretionary items.
Macy’s (NYSE: M) inventories went higher by 7% at the end of the second quarter compared with a year earlier, spurring the department store chain to alert of advanced markdowns to get back to standard stock levels by the end of the year.
Macy anticipates fiscal 2022 adjusted earnings of $4.00 to $4.20 per share, which corresponds with its previous outlook of $4.53 to $4.95 per share.
Nevertheless, the need for formal and party-wear from middle- and high-income shoppers returning to social events remained strong, as they stay relatively protected from the consequences of decades-high inflation.
Comparable sales at Macy’s upscale Bloomingdale’s department stores rose 5.8% in the second quarter while 7.6% at its luxury beauty outlet Blue Mercury.
However, comparable sales at Macy’s namesake stores dropped 2.8% in the reported quarter.
On an adjusted basis, the company reached $1 per share, compared with estimates of $0.85, as stated by Refinitiv IBES data, sending the company’s shares up nearly 2% in premarket trading.
Macy’s prediction of 2022 net sales of $24.34B to $24.5B changed, compared with its previous forecast of $24.46B to $24.70B.