Macy’s Up on Earnings, Guidance and Announces Partnership to Bring Back Toys”R”Us
Aug 19, 2021 By MarketDepth
Macy’s, Inc. (NYSE: M) stock jumped more than 15% on Thursday, after the retail store reported results for the second quarter of 2021, raised guidance for fiscal 2021 and announced plans to return capital to shareholders. According to the report, Macy’s managed to end the second quarter with roughly $2.1 billion in cash, which allows the company to execute on two of its major priorities- investing in profitable growth, while de-levering the balance sheet.
“Second quarter results were strong across all three nameplates and surpassed our expectations. 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, chairman and chief executive officer of Macy’s, Inc. “Through the Macy’s, Inc. portfolio and our omnichannel approach, we provide a compelling, seamless integration between physical stores and digital shopping to most effectively meet the needs of our customers.”
Comparing sales to the same quarter in 2020 can be misleading due to the pandemic, therefore Macy’s also provided comparisons to 2019. The Company reported diluted earnings per share of $1.08 and adjusted diluted earnings per share of $1.29 both exceeded expectations for the quarter. This compares to a diluted loss per share of $(1.39) and an Adjusted diluted loss per share of $(0.81) in second quarter 2020. And it compares to diluted earnings per share and Adjusted diluted earnings per share of $0.28 in second quarter 2019.
“While there is still uncertainty due to the ongoing pandemic, the increased traction of the Polaris strategy and our strong performance in the second quarter gives us the confidence to materially increase full-year guidance. We are also increasing our long-term Adjusted EBITDA margin target to remain in the low-double digits beginning next year. We are now well positioned to strengthen our business, enhance our long-term financial stability and return capital to our shareholders,” said Adrian Mitchell, chief financial officer of Macy’s, Inc.
In addition to the earnings report Macy’s also announced a partnership with WHP Global to bring together Macy’s and Toys”R”Us.
“As a Toys”R”Us kid, I could not be more excited to bring this beloved brand that so many of our customers know and love into Macy’s online and to our stores across America,” said Nata Dvir, Macy’s chief merchandising officer. “Our toy business grew exponentially in the past year, with many families looking to inspire their children’s imagination and create meaningful moments together. Toys”R”Us is a globally recognized leader in children’s toys and our partnership allows Macy’s to significantly expand our footprint in that category, while creating more occasions for customers to shop with us across their lifestyles.”