Macy’s forecasts upbeat annual profit, shares surge

This post was originally published on this site

Shares of the company rose about 7% in premarket trading.

The company said it expects adjusted full-year profit per share between $3.67 and $4.11, while analysts on an average had estimated $3.84, according to IBES data from Refinitiv.

Macy’s (NYSE:M) sees 2023 sales between $23.7 billion and $24.2 billion, compared to estimates of $24.29 billion.

Consumers at the higher end of the income rung have shrugged off a hit to savings from stubbornly high inflation, helping boost sales at department stores like Macy’s that mostly offer luxury and discretionary items.

However, peer Kohl’s Corp (NYSE:KSS), which caters more to inflation-hit lower-income customers posted a surprise quarterly loss and forecast full-year profit well below estimates as deep discounts to boost demand shredded the retailer’s margins.