Macy’s Jewelry Sales Strengthen in Second Quarter

RAPAPORT… Jewelry was one of the top-selling categories at Macy’s during the second fiscal quarter as shoppers refreshed wardrobes in preparation for a return to going out.

“We saw continued strength in dressy apparel, fine jewelry and fragrances as our customers prepared for in-person social events and back to school,” Macy’s CEO Jeff Gennette said last week in an earnings call transcribed by The Motley Fool. “We saw enthusiasm for newness with a pent-up desire to feel fresh and look current at gatherings and occasions in school and on social media.”

Group revenue rose 59% year on year to $5.65 billion in the three months ending July 31, while comparable-store sales — at owned and licensed shops open for at least a year — surged 62%. Sales also benefited from a resurgence in gift giving as people tried to catch up on events that occurred during lockdown.

“We had strong gifting business for Mother’s Day, Father’s Day and graduation, with customers making up for lost time and missed milestones with gifts of fine jewelry, fragrances and accessories,” Gennette explained.

Macy’s saw an improvement across all categories, with strong double-digit growth in men’s and women’s shoes, sunglasses, handbags, fine jewelry, fragrances and home goods. Online sales for those businesses also remained solid.

Macy’s has raised its guidance for 2021 for the second time in light of its stronger-than-expected results during the quarter. It now anticipates sales of between $23.55 billion and $23.95 billion for the full year, compared with the $21.73 billion to $22.23 billion it initially projected.

Image: A Macy’s store at Herald Square, New York City. (Shutterstock)