Macy’s has raised its forecast for the full year after stronger-than-expected sales in the second quarter, boosted in part by growth in its fine-jewelry offering.
The retailer now expects net sales to reach between $21.15 billion and $21.45 billion, compared with the $21 billion to $21.4 billion it had previously reported. Comparable-store-sales — at shops open more than a year — will decrease between 0.5% and 1.5%, rather than the original 0.5% to 2% drop.
“Fine jewelry and watches, textiles and mattresses continue to experience strong demand,” Macy’s CEO Tony Spring said in an earnings call transcribed by The Motley Fool. “The success of these categories illustrates the breadth of product and price points that we offer.”
Revenue for the second quarter fell 2.5% to $4.8 billion for the three months that ended August 2, Macy’s said Wednesday. Though the figure declined, it was higher than analysts’ expectations, sending the company’s stock soaring more than 20% following the announcement. Profit fell 42% to $87 million.
Meanwhile, Macy’s-owned chain Bloomingdale’s also saw strong sales of jewelry during the period.
“Our ambition is to be the leader in local markets that we serve, and our recent performance underscores that Bloomingdale’s is gaining momentum,” Spring added. “Our strong heritage of customer service and premium contemporary to luxury positioning is differentiated in the market, and we are able to offer the best of current trends in an accessible and compelling environment that has broad multigenerational appeal. During the second quarter, ready-to-wear, fine jewelry, fragrance, and tabletop performances were a few standouts.”
Image: Macy’s at Herald Square in New York. (Shutterstock)