Macy’s has raised its full-year forecast following stronger-than-expected second-quarter sales, drawing a boost from growth in its fine-jewelry business.
The retailer now anticipates net sales will reach between $21.68 billion and $21.83 billion, compared with the $21.5 billion to $21.75 billion it predicted in June. Comparable-store-sales – at shops open more than a year – are likely to rise between 1% to 1.5%, rather than the original 0.5% to 1.2% outlook.
“The majority of our reinvestments are in the Bold New Chapter strategy and supporting our long-term growth,” chief operating officer Thomas Edwards said in an earnings call transcribed by The Motley Fool. “There is a portion that is supporting our value proposition for some very selective and surgical areas, such as big ticket and fine jewelry.”
Net sales for the second quarter increased 1.1% year on year to $4.87 billion for the three months that ended August 1, Macy’s said last week. Profit almost doubled to $169 million from $87 million last year.
Meanwhile, Macy’s-owned Bloomingdale’s also reported strong jewelry sales during the period.
“Looking at the second-quarter category performance, we saw growth in all areas with outperformance in ready to wear, men’s apparel, fine jewelry, fragrances, and tabletop,” observed Macy’s CEO Tony Spring.
The company is also expanding its jewelry and watches line, as the segments are performing well, and will aim to ensure its products are competitively priced and maximize revenue from the category. “We are using a portion of the tariff refund to sharpen our pricing in a couple of categories,…fine jewelry being [one] of them, where we want to make sure we are capturing our fair share of the business,” Spring added.
Image: Macy’s at Herald Square in New York. (Shutterstock)
