Macy's, Inc. (NYSE:M) shares surged on Wednesday after the department store chain’s second quarter earnings topped Wall Street expectations and it raised its full-year guidance.
For the full year, Macy’s now expects adjusted earnings per share (EPS) in the range of $1.70 to $2.05, compared to earlier estimates of $1.60 to $2.
Revenue is projected to be in the range of $21.15 billion to $21.45 billion, up from $21 billion to $21.4 billion.
For the second quarter, sales were $4.8 billion, ahead of the $4.7 billion Wall Street consensus.
Same-store sales grew 1.9%, the highest in 12 quarters, driven by strong performances at Bloomingdale's (+5.7%) and Bluemercury (+1.2%).
Adjusted EPS was $0.41, above the company’s guidance and far ahead of estimates of $0.19.
“Our teams achieved better than expected top- and bottom-line results during the second quarter, driven by our strongest comparable sales growth in 12 quarters, reflecting the strong performance in Macy’s Reimagine 125 locations, Bloomingdale’s and Bluemercury,” Macy’s CEO Tony Spring said in a statement.
Shares of Macy’s were up 17.2% to just shy of $16 late morning on Wednesday.