Macy’s (NYSE: M) raised its earnings forecast for the year amid strong luxury sales and the arrival of new merchandise for the holidays. The retailer’s shares shot up almost 8% in pre-market trading amid the news.
The American conglomerate holding company reported earnings of USD0.52 per share, compared to the expected USD0.19 a share. Revenue amounted to USD5.23 Billion, slightly higher than analysts anticipated USD5.2 Billion.
“Our Polaris strategy is working. In the third quarter, we achieved solid top-line results and a strong beat to our bottom-line guidance. Macy’s brand position as a style and fashion source resonated with our customers, while luxury continued to outperform at Bloomingdale’s and Bluemercury,” said Jeff Gennette, chairman, and chief executive officer of Macy’s, Inc. “Retail is detail, and our talented and agile team are executing well to compete. We know the consumer is under increasing pressure and has choices on where to spend. As a leading gifting destination with fresh inventory across the value spectrum, we are ready to meet our customers’ needs this holiday season.”
Macy’s strives to revive its business as it continues to deal with continuous economic turmoil. The company is in the midst of its turnaround plan, named Polaris, which involves store closures, e-commerce investments, and efforts to attract younger customers to its stores.
“We are operating from a position of strong financial health – with appropriate levels of inventory, a strong balance sheet with ample liquidity, investment grade credit metrics, and fixed interest rate debt in a rising interest rate environment. We have the tools, data-driven processes, and talented teams to manage through this uncertain time and are committed to long-term, profitable growth,” added Adrian Mitchell, chief financial officer of Macy’s, Inc.