Healthy consumer spending and significant improvement in international tourism helped increase Macy's Inc.'s first-quarter same-store sales by 3.9 percent, encouraging the department store chain to raise its outlook for the remainder of the year.
Driving traffic Bloomingdale's launched an exclusive collection with Nintendo, on March 8, in New York City
Macy's is now expecting its total sales for fiscal 2018 to come in at somewhere between a 0.5 percent increase and a 1 percent decline, and for same-store sales to rise by between 1 percent and 2 percent. As of the fourth quarter of 2017, the company had expected that total sales would be off by between 0.5 percent and 2 percent for fiscal 2018, and that same-store sales would be flat or else rise by about 1 percent.
"Macy's, Inc.'s results for the first quarter of 2018 reflect continuing momentum in the business," said Chairman and CEO Jeff Gennette in a press release. "We exceeded our expectations and saw strong performance across all three brands — Macy's, Bloomingdale's and Bluemercury — as well as across all geographic regions and families of business. We are maintaining a healthy inventory position, which helped us deliver improved gross margin. The winning formula for Macy's, Inc., is a healthy brick-and-mortar business, robust e-commerce and a great mobile experience. While we have more work to do, the continuing improvement in our stores is encouraging, and we once again achieved double-digit growth in the digital business."
Operating income for the company's 2018 first quarter came to some $238 million, or 4.3 percent of sales, up from $219 million, or 4.1 percent of sales, for the 2017 comparable quarter.
Macy's, Inc., operates roughly 700 department stores under the Macy's and Bloomingdale's banners and about 160 specialty stores under the Bloomingdale's Outlet, Bluemercury and Macy's Backstage flags, and recently purchased the Story concept.
By Brannon Boswell