M – Macy's raises annual sales forecast

Shoppers are seen outside Macy’s in the Manhattan borough of New York City, New York, U.S., March 30, 2021. REUTERS/Caitlin Ochs.

Aug 19 (Reuters) – Macy’s Inc (M.N) raised its full-year sales and profit forecasts on Thursday, as vaccinations encourage more U.S. shoppers to return to its department stores to buy apparel and footwear.

Shares rose 7% in premarket trading, as the company also said it would restart paying dividends.

Sales of perfumes, shoes, dresses and formal wear have bounced back in recent months as people return to social events and occasions, fueling a 62.2% jump in comparable sales at Macy’s owned and licensed stores in the second quarter.

Analysts had expected a 41.1% rise, according to IBES data from Refinitiv.

The back-to-school shopping season, which runs from mid-July through early-September, is also expected to be boost Macy’s sales following a year when students were more mostly confined to home computer screens.

The U.S. department store chain said it expects full-year net sales of $23.55 billion to $23.95 billion, compared with a previous forecast of $21.73 billion to $22.23 billion.

The company also said it expects 2021 adjusted earnings per share of $3.41 to $3.75, compared to a prior forecast of $1.71 to $2.12.

Reporting by Uday Sampath in Bengaluru; Editing by Sriraj Kalluvila

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