Macy’s Says Jewelry Attracting Younger Customers

RAPAPORT… Jewelry was one of the top-selling categories at Macy’s during the first fiscal quarter amid an influx of new, younger customers seeking luxury products.

“We had very strong results with new customers,” Macy’s CEO Jeff Gennette said Wednesday in an earnings call transcribed by Seeking Alpha. “Fragrances, women’s shoes, big ticket, fine jewelry [and] men’s clothing are all kind of on-ramp categories for us that a lot of these younger customers transact with us on. These new customers are spending at much better rates than they have in the past.”

Group revenue rose 56% to $4.71 billion in the three months ending May 1, while comparable-store sales — at owned and licensed shops open for at least a year — surged 64%. Sales benefited from the US government stimulus and the country’s vaccine rollout, as well as the company’s sharpened focus on core divisions that drive growth, including fine jewelry.

“As consumers seek to reengage with each other, we are seeing promising signs that our core customers are shopping again, and we continue to attract new customers,” noted Gennette. “Customers are shopping categories that have been strong throughout the pandemic, including home, fine jewelry and watches, fragrances, and luxury items.”

Jewelry continues to be in demand, with the category posting “very strong” sales from Valentine’s Day through to the pre-Mother’s Day shopping period, Gennette explained.

Macy’s has raised its guidance for 2021 in light of its stronger-than-expected results during the quarter. It now anticipates sales of between $21.73 billion and $22.23 billion for the full year, compared with the $19.75 billion to $20.75 billion it initially projected.

Image: The Macy’s flagship New York store. (Shutterstock)