Macy’s Stock Soars as Shoppers Return to Stores
Wednesday saw a 20% increase in Macy’s (M) stock as the company’s recovery efforts turned same-store sales into positive numbers for the first time in three years. The company recorded a 1.9% gain in same-store sales for the second quarter. It was the first positive quarter since the first quarter of 2022 and the biggest rise in three years. Same-store sales increased 1.4% at the 125 Macy’s locations where the company made investments to enhance its offerings.
This is the beginning of momentum,
CEO Tony Spring
Macy’s Balances Weak Store Sales With Stronger Revenue Guidance
On Wednesday, the firm decreased its same-store sales projections while increasing its fiscal year revenue and profitability predictions. In comparison to the previous year, Macy’s anticipates a 0.5% to 1.5% drop in overall same-store sales, which include sales from company-owned shops as well as licensed and marketplace locations.
There’s resiliency in the consumer right now. We don’t know what the fall is going to bring
Spring
Macy’s to Shut Down 150 Locations in Three-Year Strategy Shift
When the year began, Macy’s said that it would close 150 shops over the next three years, including 66 that aren’t making money. As of August 2, there are 449 Macy’s locations overall, down from 506 during the previous year’s second quarter.
We still have more locations and supply chain facilities to close. We’ll talk more about that on the fourth quarter call, but it’s getting to the right state in our portfolio. I’m a big believer in stores … but we also have to prune still, a little bit more, to make sure that we have the right relevant portfolio of stores.
Spring
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