Macy’s Inc has raised its full-year sales and earnings guidance after booking a five-fold hike in first quarter profit.
The company, which operates approximately 850 Macy’s and Bloomingdale’s stores, said profit soared by 470% to $131 million or $0.30 per share, from $23 million or $0.05 per share a year earlier. Last year’s results included charges of $0.04 per share.
Sales in the three months to April 30 rose 5.7% to $5.89 billion, with same-store sales up 5.4%. Comps were lifted by a 38.3% jump in online sales.
“Our performance cannot be attributed to a single factor, but rather to the coordinated execution of a series of complementary customer-centric strategies,” noted CEO Terry Lundgren.
“In the first quarter, we benefited from strong top-line sales, disciplined margin and expense management, improved credit performance and lower interest expense.”
Looking ahead, the retailer said it expects full-year profit to be in the range of $2.40 to $2.45 per share, up from earlier forecasts of $2.25 to $2.30. It also expects same-store sales to rise 4.3%, compared with earlier guidance for a 3% increase.
Initiatives such as the My Macy’s localization strategy, which matches merchandise to local markets, exclusive lines such as Madonna’s Material Girl label and Kenneth Cole Reaction men’s sportswear, and new mobile technology innovations have all boosted the retailer’s confidence in its future growth.