The retailer expressed optimism after sales soared 56 percent in the first quarter, raising its forecast for the year as consumers begin to buy apparel for get-togethers. A combination of government stimulus and faster-than-expected vaccinations drove a sales rebound at Macy’s over the past three months, in what could signal the start of a post-pandemic shopping boom. Macy’s said on Tuesday that sales jumped 56 percent in its first quarter, which ended May 1, from the same period last year, when the start of the pandemic pulverized the retailer’s revenue. It raised its sales and profit forecast for the year.
The company, which also owns Bloomingdale’s, reported $4.7 billion in sales and a profit of $103 million. That compares with about $3 billion in sales and a loss of $3.6 billion in the same period last year. “Vaccinations were faster than expected,” Jeff Gennette, the chief executive of Macy’s, said in an interview on Tuesday. “As the vaccination rates climbed and customers became more and more comfortable, kind of emerging from their pandemic behavior, we definitely saw it in a real pickup in-store traffic — and then once they were in stores, how they responded with their purchases.”
He added, “We don’t think this is a small-term bump or pop. We think this is the momentum that has not peaked yet and is going to continue to play out through our business in 2021 and then to 2022 and beyond.” The retailer said it anticipated sales of $21.7 billion to $22.2 billion this year, up from a previous forecast of $19.8 billion to $20.8 billion. Macy’s is part of a larger group of retailers that have reported higher sales in the first few months of 2021, though its results stand apart because of its focus on apparel and other discretionary items.
On Tuesday, Walmart said its sales in the United States in its first quarter, which ended April 30, increased 6 percent to $93.2 billion while operating profit grew about 27 percent to $5.5 billion. Walmart’s earnings were strengthened by its e-commerce sales, which increased 37 percent in the first quarter. On an earnings call, the company also pointed to strong “reopening categories, such as travel, celebration, and personal care.” Retail sales were flat last month after a buoyant March, the Commerce Department said on Friday, suggesting an uneven recovery for the overall industry.
