Macy’s Inc. reported better-than-expected earnings as its exclusive lines helped it win market share and its upscale Bloomingdale’s chain benefited from a pickup in luxury spending. The retailer raised its full year sales and profit forecast, sending shares were up 1.5 percent in premarket trading.
Macy’s, based in Cincinnati, reported net income of $147 million, or 35 cents per share for its second quarter ended July 31, compared to $7 million, or 2 cents per share, a year earlier.
Overall sales rose 7.2 percent to $5.54 billion, while same-store sales, or sales at stores open at least a year, rose 4.9 percent.
Analysts had been expecting a profit of 29 cents per share on sales of $5.5 billion, according to Thomson Reuters I/B/E/S.
Citing better-than-expected sales trends, Macy’s raised its full year 2010 same-store sales growth forecast to a range of 4 percent to 4.2 percent, compared with its previous forecast of 3 percent to 3.5 percent.
It also raised its full year profit forecast to a range of $1.85 to $1.90, compared to Wall Street’s average forecast of $1.87 per share. Macy’s previous forecast was $1.75 to 1.80.
