Macy's stock surges as the firm raise its 2022 earnings outlook
Key takeaways:
- Macy's on Thursday reported fiscal first-quarter earnings and sales ahead of critics' anticipations.
- The department shop chain reaffirmed its fiscal 2022 sales outlook and increased its profit guidance, anticipating more vital credit card earnings for the rest of the year.
Macy's on Thursday reported fiscal first-quarter earnings and sales ahead of critics' anticipations, as customers returned to malls to shop for new outfits, luggage, and luxury goods despite decades-high inflation that has endangered to curtail consumption.
The department shop chain, which also owns Bloomingdale's, reaffirmed its fiscal 2022 sales outlook and increased its earnings guidance, anticipating more vital credit card income for the rest of the year.
It joins Nordstrom in yanking a broader trend in the retail industry of pessimistic predictions, and signs of a consumer pull back on discretionary spending. In recent days, firms including Walmart, Target, Kohl's, and Abercrombie & Fitch have warned that higher costs on logistics and labor will continue to eat into their earnings in the near term.
Macy's shares rallied to complete Thursday up 19%, at $22.92.
The retailer still anticipates 2022 earnings to be flat to up 1% compared with 2021 levels, ranging from $24.46 billion to $24.7 billion.