Despite widespread and long-term closures of many of its stores, Macy's shares soared 11% in Thursday's premarket as the department store chain's third-quarter report showed that it has emerged stronger from the epidemic.
Sales and profitability were both above expectations, and the retailer upped its full-year guidance after recruiting 4.4 million new customers in the three months ending October 30, up from 5 million in the previous quarter.
At the midpoint of its projection range, the business now expects full-year net sales of $24.20 billion, up from $23.75 billion previously.
Customers' average spending increased by 16% across three reward program segments: platinum, gold, and silver.
Total net sales and comparable sales both increased by 36%. The total revenue was $5.44 billion. Adjusted earnings per share grew by more than fourfold to $1.23 and were also significantly higher than two years ago when the last comparable pre-pandemic figure was released.
Separately, Macy's announced the introduction of a curated online marketplace to build on the e-commerce achievements it has earned in recent years.
Home products, fragrances, jewelry, watches, and sleepwear have all performed well, according to the business, while occasion-specific items like gowns, men's tailoring, and luggage have all performed well.
Digital sales increased 19% in the second quarter, reversing a downward trend. Despite this, internet sales as a percentage of overall sales declined by 5% year over year as more customers returned to its department stores to shop in person.