Finance

Macy’s CEO says its robust sales gains aren’t a ‘short-term pop’

In this article

Jeff Gennette, CEO of Macy’s.
Getty Images

Macy’s said Tuesday that the huge sales gains it posted in the first quarter aren’t a fluke.

“We don’t see this as a short-term pop,” Chief Executive Jeff Gennette said during an earnings conference call. “There are pent-up demand opportunities … that give us confidence for accelerated profitable growth in 2021 and beyond.”

Macy’s sales jumped nearly 33% in the latest quarter, helping it to turn a surprise profit and prompting it to raise its forecast for the year.

The company is lapping a period when its department stores were forced shut due to lockdowns that were put in place to help curb the spread of Covid-19. Sales tumbled a year ago, as shoppers put spending on apparel, handbags and makeup on pause.

Many of those categories are now coming back strong, Gennette said.

“As the weather warms up, and vaccines are more readily available, customers are feeling increasingly confident to get dressed up and venture outside,” Gennette said. “They’re also starting to attend events again.”

Sales of luggage have climbed, Gennette said, as people get ready to travel again. Proms and weddings are back on again, and sales of dresses are rising week by week. At Bloomingdale’s, sales of dressy sandals are up year over year. And on the men’s side, demand for tailored clothing is spiking, the company said.

But Gennette also explained that demand in many of the categories that were fueled by the pandemic hasn’t slowed down, either. He cited home goods and pajamas as two examples of product categories that continue to grow.

Macy’s shares were up about 3% in premarket trading.

Articles You May Like

Gold rate today: Yellow metal drops lower; silver at Rs 58,650 per kg
NASDAQ index trades above the Monday high
USD ticks higher as the day works toward the close
Spirit Airlines posts loss on surge in costs, expects Florida challenges to continue
Gold set for fourth weekly gain as U.S. dollar under pressure

Leave a Reply

Your email address will not be published.