Macy’s eases worries over holiday season with forecast raise

FILE PHOTO: Shoppers are seen outside Macy’s in the Manhattan borough of New York City

(Reuters) – Macy’s Inc raised its full-year sales and profit outlook on Thursday, easing fears that the department store chain would struggle with product shortages during the crucial holiday season.

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The retailer’s shares rose 3% in premarket trading.

After last year’s lockdown-driven slump, department stores have made a comeback in recent months as Americans returning to offices and social events splurge on perfumes, dresses and formal wear.

An early start to holiday shopping by consumers worried about thin product supply during the festive season has also supported sales of retailers.

The company said it expected full-year net sales of $24.12 billion to $24.28 billion, compared with a previous forecast of $23.55 billion to $23.95 billion.

It also raised its 2021 adjusted earnings per share outlook to between $4.57 and $4.76, compared with a prior forecast of $3.41 to $3.75.

(Reporting by Uday Sampath in Bengaluru; Editing by Aditya Soni)