Macy’s raises annual profit outlook on strong Q1 results
Shoppers’ return to occasion dressing helped to power Macy’s fiscal first-quarter results, and the department store chain raised its annual earnings outlook even as surging inflation is crimping Americans’ budgets.
The performance, announced Thursday, was among the few bright spots in a pile of reports from retailers that showed the impact of rising costs for everything from labor to shipping. Macy’s, along with others, is also adjusting to quickly changing shopping behavior as consumers go back to the office and resume normal lives. They’re going out to restaurants and doing more activities while buying less stuff that focuses on activities around the home.
Such factors flummoxed a number of retailers. Department store chain Kohl’s cut its annual earnings and sales forecast last week. It noted that some shoppers are trading up to premium brands, while others are trading down to lower priced private-label items. And mall-based teen clothing retailer Abercrombie & Fitch posted a first-quarter loss and cut its outlook on Tuesday. Target reported last week that its profit tumbled 52% from last year. The chain said a lightening quick return by consumers to more normalized spending left it with bloated inventory of items including TV sets that must be marked down to sell.