Before the opening bell on Tuesday (Feb. 22), Macy’s is set to deliver its fourth-quarter and full-year 2021 sales and earnings report that is anticipated to show big overall gains and the largest leap in holiday sales among department sales in the U.S., according to Reuters and other news outlets on Friday (Feb. 18).
The big boost in holiday sales is said to have come from its smart investments in its eCommerce business and its ability to keep merchandise on the shelves.
Wall Street analysts pointed to Macy’s ability to tap into several ports to make sure overseas suppliers got merchandise to them early to ensure fully stocked inventory for last year’s peak holiday shopping season.
See also: ‘Mini Macy’s’ Would Mark Next Step in Ongoing Reinvention of Giant Dept. Stores
Analysts polled by Refinitiv expect Macy’s fourth-quarter revenue to jump 25% and profit to more than double, per Reuters.
Wall Street expectations for Macy’s competitor Nordstrom is cautious now that its off-price Rack unit, which accounts for one-third of its sales, has been struggling, according to Reuters. Analysts expect Nordstrom sales to freefall from pre-pandemic levels, but with a 24% increase from a year earlier when it faced shipping delays.
“Nordstrom was the original digital strategy store, but Macy’s has caught up and really has done more. Macy’s has embraced a more data-driven, disciplined approach to managing all aspects of the business,” retail analyst Jane Hali told Reuters.
Read more: Jana Partners Cuts Stake in Macy’s by 84%
A loyalty program Macy’s rolled out in 2020 not only helped attract a large customer base of younger shoppers but also was instrumental in the growth of its quarterly online sales.
In the works for Macy’s is a marketplace for third-party sellers carrying brands the department store doesn’t, a move that could further grow its base of customers.
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