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Bloomberg
Macy’s Inc projected sales and earnings for the current year that outpaced Wall Street’s estimates — a sign that its efforts to boost online sales are paying off. Following the release, Fitch Ratings boosted the department-store retailer to investment grade.
The company sees full-year earnings of $4.13 to $4.52 a share, excluding some items, topping the $3.98 average estimate of analysts surveyed by Bloomberg. Macy’s projects net sales to be $24.46 billion to $24.7 billion, compared with the analyst estimate of $24.2 billion.
Fitch raised Macy’s debt to BBB-, citing strong sales and “some evidence of successful implementation†of its business overhaul. The company remains below investment grade at S&P Global Ratings and Moody’s Investors Service.
Same-store sales, a key metric in retail, rose 28% on an owned basis in last quarter, according to a statement. That’s above the average estimate of about 26% from analysts.
CEO Jeff Gennette said Macy’s has overcome Covid-19 disruptions, logistics problems, labour issues and inflation pressures.