Gennette said that luxury continued to outperform at Macy’s Bloomingdale’s and Bluemercury divisions. Comparable sales at Bloomingdale’s were up 5.3%, driven by strength across women’s, men’s and kid’s contemporary and dressy apparel, women’s shoes as well as luggage. Comp sales at Blue Mercury rose 14%. (Comp sales at Macy’s fell 4.4%).
Inventory was up 4% year-over-year (compared to 7% year-over-year in the second quarter) and down 12% versus 2019. The company said it “strategically” brought in seasonal merchandise earlier to strengthen its competitive position for holiday and has the added capacity to chase in-season trends.
“We are operating from a position of strong financial health – with appropriate levels of inventory, a strong balance sheet with ample liquidity, investment grade credit metrics and fixed interest rate debt in a rising interest rate environment,” said Macy’s CFO Adrian Mitchell. “We have the tools, data-driven processes and talented teams to manage through this uncertain time and are committed to long-term, profitable growth.”
The company is now expecting full-year adjusted earnings per share of $4.07 to $4.27, up from its prior guidance of $4.00 to $4.20. It reaffirmed its sales guidance for sales of $24.340 billion to $24.580 billion.
Earlier this month, Macy’s announced it will invest a total $30 million in a program to advance entrepreneurial growth and increase investment in diverse-owned and underrepresented businesses.