After a strong first quarter: Macy’s raises profit forecast

The US retail group Macy’s Inc. has had a successful start to the 2022/23 financial year. On Thursday, the group of companies, which includes the chains Macy’s, Bloomingdale’s and Bluemercury, presented convincing first-quarter results and raised its full-year profit guidance.

In the quarter ended April, the group generated sales of 5.35 billion US dollars (5.00 billion euros), exceeding the level of the same period last year by 13.6 percent. CEO Jeff Gennette said in a statement that current “macroeconomic pressures” have not stopped customers from shopping in recent months. The demand for occasion wear has increased, and the business with luxury items has shown “continued strength”, emphasized the CEO.

Thanks to the strong sales growth, the expense ratio fell, and the retailer was also able to limit discounts. The profit was significantly higher than in the same period of the previous year and exceeded market expectations. Earnings before interest, taxes, depreciation and amortization (EBITDA) grew 48.9 percent to $676 million, and net income more than doubled, jumping from $103 million to $286 million ($267 million). Euro).

In view of the positive development, the company set more optimistic targets for the full fiscal year: Adjusted diluted earnings per share should now reach a level of 4.53 to 4.95 US dollars, after previously only 4.13 to 4.52 US dollars had been expected. The sales forecast remained unchanged. Management therefore continues to expect revenues in the range of 24.460 to 24.700 billion US dollars.

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