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Macy's beats expectations in Q3 earnings

Retailer Macy's has a better-than-expected Q3 earnings report.

CFDs are a leveraged product and can result in losses that exceed deposits. Trading CFDs may not be suitable for everyone, so please ensure you fully understand the risks and take care to manage your exposure.
Macy's store
Source: Bloomberg

Macy's exceeded expectations with its latest third quarter (Q3) earnings report. Despite an initial dip in the stock price, the retailer reported strong revenue growth.

Brick-and-mortar stores survive

Macy’s reported sales of $5.4 million, an increase of 2.3%. The earnings per share(EPS) also jumped and same-store sales gained more customers. That caused a 3.3% surge for the company.

Despite the closures of many retail stores in the US, Macy’s manages to thrive. The corporation has brought in more shoppers by updating their locations with limited pop-up collections from up-and-coming fashion designers. The company has also had success with its Backstage brand, a lower-priced competition to TJ Maxx and other discount chains. While the brick-and-mortar shops have seen improvement, the retailer has also seen double-digit growth with its online sales.

‘We are pleased with Macy's, Inc. performance in the third quarter, marking our fourth consecutive quarter of comparable sales growth. Our strategic initiatives are gaining momentum and delivering results,’ said Jeff Gennette, Macy's chief executive officer (CEO).

Macy’s Q4 outlook

Black Friday, the start of holiday shopping season in the US, is sure to be a bright spot for Macy’s. The company projected that Q4 will be profitable.

‘The holiday season is when Macy's truly shines. We have the right merchandise, the right marketing and the right customer experiences in place to deliver a strong [Q4],’ said Gennette.

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