Macy’s Q1 sales rise by 56% to US $ 4.71 billion

Macy’s, the US fashion retailer, has witnessed a sales rise of 56 per cent in its first quarter to clock an impressive US $ 4.71 billion.

The e-commerce sales for the retailer too rose by 34 per cent from what it was during the same period in 2020.

Compared to 2019 (the pre-pandemic period), the e-commerce growth has been 32 per cent.

In a statement released to media, Macy’s said that the comp sales surged by 63.9 per cent on owned-plus-licensed basis over last year. However, comp sales fell by 10 per cent when compared to 2019.

The net income in Q1 shot up by more than 100 per cent to record US $ 103 million – thanks partly to its pullback on expenses.

Reportedly, sales of apparels in Q1 were up by around 29 percentage points and those of men’s apparels by 13 points.        

More on this, Jeff Gennette, CEO, Macy’s, said that while Macy’s gained from Government’s direct relief to consumers, it was the fast pace of vaccine distribution across the country that was surprising.

Thanks to expense in cuts and leaner inventories, gross margin rose by 38.6 per cent in the quarter. Notably, inventory fell by 23 per cent from the first quarter of 2019.

Macy’s now expects net sales for 2021 to grow between 25 per cent and 28 per cent over 2020 to reach between US $ 21.7 billion and US $ 22.2 billion. The e-commerce sales are expected to reach around US $ 8 billion this year.

Besides apparels, Macy’s is known for footwear, fashion accessories and bedding, amongst others.