Macy’s Share Surge Following Positive Third-Quarter Earnings
Nov 19, 2021 By MarketDepth
Macy’s (NYSE: M) shares surged over 20% following better-than-expected third-quarter earnings and sales. Amid the positive news, the department store chain raised its full-year forecast ahead of the holidays.
Clothing Buying Up
According to company executives, consumers are actively spending on clothing as they return to work and resume their social activities. Furthermore, demand for fragrances, jewelry, watches and home goods have also continuously climbed.
Digital Marketplace Launch in 2022
The big name retailer also introduced the launch of a digital marketplace, which is expected to debut in 2022. Macy’s revealed that it had hired consulting firm AlixPartners to revise its business structure.
“We also recognize the significant value the market is assigning to pure e-commerce businesses. As we look at the landscape today, we are undertaking additional analysis that could help inform our long-term strategy to further unlock value for Macy’s.”
Macy’s Chief Executive Jeff Gennette
Macy’s reported earnings of USD1.23 per share, compared to the expected USD0/31 a share. Revenue amounted to USD5.4 Billion, higher than analysts anticipated USD5.2 Billion.
Digital Sales Up
Digital sales rose 19% year over year and have increased USD49% on a two-year basis. Macy’s says that 33% of total sales, a 10% increase from 2019 levels.
