Macy’s: Sales increased in the quarter

Macy’s Inc. comparable sales exceeded analysts’ estimates for the critical holiday quarter, taking advantage of the supply-side strategy by “stockpiling” in advance, with its share boosting 4% in pre-conference trading.

Also, after a review, the company decided to reject the pressure of the activist investor Jane Partners to separate its digital activities.

“We are more confident about our future as a united company,” said CEO Jeff Gennette.

Following a strong start to the holiday season in November, retailers were facing the effects of Omicron, which sent sales to the U.S. industry down at its fastest pace in 10 months in December.

However, Macys’ efforts to expedite shipments and order products earlier in the year to “stockpile” for the holidays, the most important time of year for retailers, have helped it offset the blow since December.

Macy’s comparable sales rose 23.8% in the quarter ended Jan. 29, beating analysts’ estimates for a 24.8% increase.

Source: Capital

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