Macy’s beats expectations, raises guidance and announces new share repurchase program
shares jumped 3.2% in Thursday premarket trading after the department store retailer reported second-quarter earnings that beat expectations and raised its full-year guidance. Net income totaled $345 million, or $1.08 per share, after a loss of $431 million, or $1.39 per share. Adjusted EPS of $1.29 blew past the FactSet consensus for 23 cents. Sales of $5.647 billion were up from $3.559 billion and also beat the FactSet consensus for $5.011 billion. Comparable sales on an owned bases soared 61.2%, and grew 62.2% on an owned-plus-licensed basis. “Our momentum in the first quarter accelerated in the second quarter as we successfully reengaged core customers and attracted new, younger customers with new brands and categories,” said Jeff Gennette, chief executive of Macy’s, in a statement. Macy’s is reinstating its dividend, declaring a quarterly dividend of 15 cents payable on October 1 to shareholders of record at the close of business on September 15. And the board has approved a share buyback program of $500 million. For full-year 2021, Macy’s raised its sales guidance to $23.55 billion to $23.95 billion from $21.73 billion to $22.23 billion and raised its adjusted EPS forecast to $3.41 to $3.75 from $1.71 to $2.12. The FactSet consensus is for sales of $22.090 billion and EPS of $2.32. Macy’s stock has rallied 60.6% for the year to date while the benchmark S&P 500 index
is up 17.2% for the period.
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