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Macy’s profits rebound thanks to stimulus, customers ‘ready to get on with life’

Mount Equity Group Tokyo, Japan > News > Business > Macy’s profits rebound thanks to stimulus, customers ‘ready to get on with life’

Macy’s emerged from an unprecedented year with a surprising swing back into the profit column and it boosted its guidance for all of 2021.

Sales were fueled by government stimulus checks and the massive rollout of vaccines that have emboldened Americans to head outdoors again, the company said.

“Clearly our customer is ready to get on with life,” Jeff Gennette, Macy’s CEO, told analysts during the earnings call on Tuesday. “We don’t see this as a short-term pop.”

Sales of merchandise that was strong during the pandemic, such as home goods, continue to move well, and customers are spending more in other categories as well, Gennette said. He noted that customers are feeling increasingly confident to get dressed up to venture outside. So, sales of special-occasion items like prom dresses are doing well.

Luggage sales are also starting to show solid improvement. At Bloomingdale’s, business in dressy sandals and tailored suiting are starting to tick up.

Net income hit $103 million after massive losses during the same period last year when stores were forced to lock their doors.

On a per-share basis, net income at the New York company was 32 cents, or 39 cents if one-time charges are removed.