Ohio's Macy’s raises annual sales estimate on early inventory build, shares jump 22%

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Ohio's Macy’s raises annual sales estimate on early inventory build, shares jump 22%

On Thursday, Macy’s Inc., the 92-year-old American departmental store chain headquartered on Cincinnati, Ohio, had raised its annual profit and sales forecast and hinted that the top-tier American retailer might have just left behind the fiscal fallouts of an ongoing global-scale supply chain crisis, mostly riding on the back of an early move to muscle up stockpiles.

Followed by an upbeat holiday quarter forecast, shares’ prices of Macy’s Inc soared as much as 22.02 per cent to $37.63 on the day’s Wall Street wind-down after surging nearly 19 per cent in pre-market trading, hitting a fresh three-year peak.

In point of fact, the retailer, founded by a Xavier Warren in Columbus back in 1928, also had beaten Wall Street estimates for quarterly sales, while the departmental store chain was quoted saying that it was looking to a potential split of its e-commerce business, feathering up investors’ optimism further.

If truth is be spoken, as pandemic-induced restrictions were lifted earlier this year following an acceleration in vaccination campaign, a barrage of US retailers had witnessed a strong bounce back in sales over recent months with more Americans stepping outside to purchase big-ticket consumer items like of perfumes and formal wear.

Macy’s shares jump 22% as early stockpile build to ward off supply crises

Although, a swathe of US multinational retailers ranging from Amazon.com Inc to Kohls to Walmart Inc., remained downbeat over an ongoing supply chain crisis, Macy’s Inc’s sagacious move to a stockpile build-up much earlier than rivals, helped heaved up its inventories about 19.4 per cent higher in third-quarter.

Besides, according to Macy’s Inc quarterly earnings’ report for Q3, 2021, the American departmental store chain is expecting a net sales figure flanked between $24.12 billion to $24.28 billion, well above a prior estimate of $23.55 billion to $23.95 billion.

Meanwhile, voicing a jubilant tone, Macy’s Chief Executive Jeff Gennette said to a press agency reporter, “I have the right inventory to do what I need to do in the holiday timeframe”.