Macy's, Kohl's sales get lift from shoppers returning to department stores
By Uday Sampath Kumar
Aug 19 (Reuters) - Macy's Inc and Kohl's Corp raised their full-year sales and profit forecasts on Thursday, as U.S. shoppers coming back to stores splurge on perfumes, shoes and apparel.
The resumption of social events and the gradual reopening of offices in the United States following vaccinations helped lift second-quarter net sales at Macy's by 59% and by 31.4% at Kohl's.
"We saw enthusiasm for newness with a pent-up desire to feel fresh and look current at gatherings and occasions in school and on social media," Macy's Chief Executive Officer Jeffrey Gennette said in a post-earnings call.
The focus is now on the back-to-school shopping season following a year when students were more mostly confined to home computer screens.
Eyeing the shift back to retail stores, Macy's on Thursday announced plans to launch Toys "R" Us shop-in-shops in 400 its outlets from next year.
However, online sales at Macy's, which is investing heavily to bolster its e-commerce capabilities, fell 6% in the quarter, echoing a wider slowdown reported by other retailers after the massive jump last year.
The second straight strong quarter also prompted Macy's to restart paying dividends paused last year due to the uncertainty caused by the pandemic.
Macy's shares gained as much as 6% and Kohl's 3.5% in pre-market trading. The shares were volatile following a report in the Wall Street Journal that Amazon.com Inc was planning to open several large physical retail stores in the United States that will operate like department stores.
Macy's said it expects full-year net sales of $23.55 billion to $23.95 billion, compared with a previous forecast of $21.73 billion to $22.23 billion. It also raised its 2021 adjusted earnings per share forecast to $3.41 to $3.75, from $1.71 to $2.12 earlier.
Kohl's now expects full-year net sales to increase in a low-twenties percentage range, against a previous forecast of mid-to-high teens percentage rise.
(Reporting by Uday Sampath in Bengaluru; Editing by Sriraj Kalluvila)
