Macy's Remains a Tough-To-Own Name Despite Q2 Beat
By most measures, Macy's (NYSE: M) second quarter was a solid win. Revenue of $5.65 billion was up nearly 60% year-over-year, and the bottom line swung from a loss of $1.39 per share a year ago to a profit of $1.08 per share for the three-month stretch ending in July. Sure, the comparisons were to a COVID-crimped quarter, but Q2's results were still better than the $5.01 billion worth of sales and earnings of only around $0.14 per share analysts were collectively expecting. The department store chain even upped its full-year sales and profit guidance and reinstated its dividend, fanning the bullish flames that have driven the stock up 27% since last week's release of last quarter's results.
However, if you think this company's beginning a recovery that's too good for investors to pass up, you may want to take a step back and look at the bigger picture.
Macy's isn't necessarily doomed. Last quarter was a better-than-expected one, at least partially because the company is positioning itself smartly for the post-pandemic norm. Using its stores to fulfill online orders, for instance, speeds up delivery times and efficiently take some of the burden off warehouses dedicated to online shopping. In the meantime, the retailer also drew a sizable crowd back to its stores last quarter despite the lingering pandemic.
Source Fool.com
