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.