Macy’s Ups Outlook as Jewelry Remains Solid

RAPAPORT… Macy’s has raised its 2021 revenue forecast for the third time following robust sales of jewelry, watches and other top categories in the latest fiscal quarter.

The retailer now expects total sales of $24.12 billion to $24.28 billion for the full year, compared to its previous guidance of $23.55 billion to $23.95 billion, it said last week.

“Our products and categories that were strong during the height of the pandemic, such as fragrance, watches, jewelry, sleepwear and home, continued to perform well during the third quarter,” Macy’s CEO Jeff Gennette explained in an earnings call transcribed by The Motley Fool.

Group revenue rose 36% year on year to $5.44 billion in the three months ending October 30, while comparable-store sales — at owned and licensed shops open for at least a year — also surged 36%. Sales also benefited from a recovery in occasion-based categories, such as dresses, men’s tailored and luggage, as the US reopened and consumers returned to normal activities, Macy’s explained.

The company’s Bloomingdale’s business also performed well, driven by strong sales of luxury handbags, fine jewelry, home and men’s shoes. Revenue from those products outperformed 2019 levels, both in-store and online, Gennette added.

Image: The Macy’s Herald Square store in Manhattan, New York. (Shutterstock)