The US department store chain Macy's has slightly raised its revenue and profit outlook due to the strong performance of its luxury chains Bloomingdale's and Bluemercury. Despite the uncertain economic environment, high-income consumers continue to spend. Under CEO Tony Spring, Macy's is intensifying its focus on the premium segment, including clothing, handbags, perfumes, and skincare products. Growth in the Macy's stores, which target a broader customer base, lags behind. Spring's strategy, 'Bold New Chapter', also emphasizes more profitable products without discounts, and the closure of unprofitable stores.
Macy's now expects full-year revenue between $21.68 billion and $21.83 billion, up from the previous range of $21.50 billion to $21.75 billion. The earnings per share are projected to be between $2.15 and $2.35, compared to the earlier estimate of $2.00 to $2.20. In the most recent quarter, the company's revenue increased by 1.1% to $4.87 billion, surpassing the analysts' estimate of $4.83 billion. The adjusted revenue of Bloomingdale's rose by 11.3%, while Bluemercury's increased by 6.2%. In contrast, Macy's stores saw a revenue increase of only 1.1%. The adjusted earnings of 40 cents per share, excluding customs refunds, exceeded the analysts' estimate of 37 cents.
