Jeff Gennette, Macy’s CEO.
Macy’s said Tuesday that the tremendous sales growth in the first quarter was no accident.
“We don’t see this as short-term pop,” Chief Executive Jeff Gennette said during a conference call on the results. “There are pent-up demand opportunities … that give us confidence in accelerating profitable growth in 2021 and beyond.”
Macy’s revenue rose to $ 4.7 billion in the most recent quarter from $ 3 billion a year ago. This helped generate a surprise profit and prompted the company to raise its forecast for the year.
The company is in a phase where its department stores have had to close due to lockdowns put in place to contain the spread of Covid-19. Sales fell a year ago when shoppers paused spending on clothing, handbags, and makeup.
Many of those categories are making a strong comeback now, Gennette said.
“As the weather warms and vaccines become more readily available, customers are feeling increasingly confident to get dressed and venture outside,” said Gennette. “They are also starting to attend events again.”
Luggage sales rose, Gennette said, as people got ready to travel again. Proms and weddings are back in business and sales of dresses are increasing week by week. At Bloomingdale’s, sales of elegant sandals are increasing every year. And on the men’s side, demand for bespoke clothing is increasing, the company said.
But Gennette also stated that demand in many of the categories fueled by the pandemic has not slowed either. He cited housewares and pajamas as two examples of product categories that continue to grow.
Macy’s shares rose about 1.5% in early trading.