• Home
  • News
  • Business
  • Macy’s Q3 profit increases, raises outlook

Macy’s Q3 profit increases, raises outlook

By Prachi Singh

18 Nov 2021

Business

Victor J. Blue / Getty Images via AFP

Macy’s, Inc. diluted earnings per share of 76 cents and adjusted diluted earnings per share of 1.23 dollars in the third quarter. This compares to a diluted loss per share of 29 cents and an adjusted diluted loss per share of 19 cents in third quarter 2020.

The company said, the result compares to diluted earnings per share of 1 cent and adjusted diluted earnings per share of 7 cents in third quarter 2019.

“Our company delivered another strong quarter and exceeded our expectations on both top and bottom lines. The results were driven by the effective execution of the Polaris strategy and an improved economic environment,” said Jeff Gennette, chairman and chief executive officer of Macy’s, Inc.

Third quarter highlights of Macy’s performance

Comparable sales increased 37.2 percent on an owned basis and 35.6 percent on an owned-plus-licensed basis versus 2020; up 8.9 percent and up 8.7 percent, respectively, versus 2019.

Digital sales increased 19 percent versus third quarter 2020 and grew 49 percent versus third quarter 2019.

Macy’s comparable sales were up 36.4 percent on an owned basis and up 35.1 percent on an owned-plus-licensed basis compared to the third quarter of 2020, and up 9 percent and 8.4 percent, respectively, compared to the third quarter of 2019.

Bloomingdale’s comparable sales on an owned basis were up 43.4 percent and on an owned-plus-licensed basis were up 38.5 percent compared to the third quarter of 2020, and up 9.1 percent and 11.2 percent, respectively, compared to the third quarter of 2019. Results were driven by strong sales of luxury handbags, fine jewelry, home, men’s shoes and contemporary apparel.

Bluemercury comparable sales were up 39.5 percent on an owned and owned-plus-licensed basis compared to the third quarter of 2020, but down 2.2 percent on an owned and owned-plus-licensed basis compared to the third quarter of 2019.

Gross margin for the quarter was 41 percent, up from 35.6 percent in third quarter 2020 and up 100 basis points from third quarter 2019.

Macy’s raises full year guidance

For the full year, net sales are expected to be in the range of 23.55 billion dollars and 23.95 billion dollars, adjusted diluted earnings per share in the range of 3.41 dollars and 3.75 dollars and adjusted EBITDA as a percent of sales in the range of 11 percent to 11.5 percent.

In the fourth quarter 2021, comparable sales on an owned-plus-licensed basis versus 2019 are expected to increase between 2 percent and 4 percent.