Macy’s reports Q2 earnings increase, comparable sales increase 61.2 percent

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Macy’s, Inc. reported diluted earnings per share of 1.08 dollars and adjusted diluted earnings per share of 1.29 dollars for the second quarter compared to a diluted loss per share of 1.39 dollars and an adjusted diluted loss per share of 81 cents in second quarter 2020. This compares to the diluted earnings and adjusted diluted earnings for shares of 28 cents in the second quarter 2019.

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The company’s comparable sales increased 61.2 percent on an owned basis and 62.2 percent on an owned plus licensed basis versus 2020. Comparable sales increased by 5.8 percent for an owned basis, and 5.9 percent for an owned plus license basis versus 2019.

“Second quarter results were strong across all three nameplates and surpassed our expectations. We were able to reengage core customers and attract new, younger customers with different brands and categories, accelerating our momentum from the first quarter,” stated Jeff Gennette, chief executive officer at Macy’s, Inc.

Macy’s reinstates dividend

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Macy’s digital sales declined 6 percent versus second quarter 2020 and grew 45 percent versus second quarter 2019. The digital penetration rate was 32 percent, which is a 22-percentage points decrease from the second quarter 2020 but a 10-percentagepoint improvement over the second quarter 2019.

Gross margin for the quarter was 40.6 percent, up from 23.6 percent in second quarter 2020 and up 180 basis points from second quarter 2019. To shareholders who were in effect on September 15, 2021, the dividend will be paid on October 1.

Macy’s raises FY22 guidance

For the full year, Macy’s expects to report net sales in the range of 23.55 to 23.95 billion dollars, adjusted diluted earnings per share in the range of 3.41 to 3.75 dollars and adjusted Ebitda as percentage of sales between 11 to 11.5 percent.