Wall Street expects Macy’s Inc. to report the biggest jump in holiday sales among U.S. department stores when it reports quarterly results on Tuesday, benefiting from its investments in online business and ability to keep its shelves stocked.
Analysts said the company was able to keep its supplies steady during the peak shopping season as it used multiple ports to receive early deliveries of apparel and accessories from overseas suppliers.
That is in contrast to their expectations for rival Nordstrom Inc. as struggles at its Rack off-price division, which accounts for a third of its sales, turned Wall Street cautious on its near-term prospects.
“Nordstrom was the original digital strategy store, but Macy’s has caught up and really has done more. Macy’s has embraced a more data-driven, disciplined approach to managing all aspects of the business,” retail analyst Jane Hali said.
The Context
In its last quarter, Macy’s added 4.4 million new customers, up 28 percent from pre-pandemic levels, with around a third of them returning to the brand after months. J.P. Morgan analysts said Macy’s is a primary market share beneficiary, with J.C. Penney and Belk ceding ground.The Fundamentals
Analysts polled by Refinitiv expect Macy’s fourth-quarter revenue to jump 25 percent and profit to more than double.They expect Nordstrom sales to decline sharply from pre-pandemic levels, although that implies a 24 percent increase from a year earlier when it faced shipping delays.
Kohl’s revenue is expected to jump 11 percent from a year earlier, but was likely to be roughly flat when compared with pre-pandemic levels.
