By Dhirendra Tripathi
Investing.com – Macy’s (NYSE:M) shares erased some of their gains but were still up 1% in premarket trading Tuesday, boosted by growth across all its brands, raised its guidance for the year.
The department store operator's three brands -- Macy’s, Bloomingdale’s and Bluemercury – all grew on the back of new customers tapping Macy’s online platform to shop as they return to a pre-pandemic lifestyle.
“. . .We also have emerging opportunities in new categories and brands, including toys, health and wellness, pet and home décor,” Chairman and Chief Executive Officer Jeff Gennette said.
The company said the government’s vaccination program and stimulus payments, along with its own strategy had all helped it to grow its business.
Macy’s Polaris (NYSE:PII) strategy, initiated in 2020, is a three-year exercise that aims to strengthen customer relationships and accelerate digital growth while cutting costs.
The company now expects its 2021 net sales to be in a range of $21.73 billion to $22.23 billion, higher than the $19.75 billion to $20.75 billion it estimated earlier.
Adjusted diluted earnings per share is seen coming in between $1.71 and $2.12, at least 90% higher than the 40 cents to 90 cent range estimated earlier.
Macy’s March quarter net sales rose 56% from a year ago to $4.7 billion. Adjusted diluted EPS improved to 39 cents from a loss of $2.03 in the same quarter last year.
Gross margin more than trebled to $1.81 billion from $516 million.