US retailer Macy’s reported Q1 net profits of $103mn vs. a loss of $3.6bn a year earlier with revenues jumping to $4.7bn, 56% YoY. The results were a surprise as analysts expected a loss in the quarter. Macy’s comparable sales grew 62.5% and 63.9% YoY on an owned and licensed basis respectively while digital sales grew 34%. Its gross margins also improved to 38.6% vs. 17.1% in 1Q2020. Macy’s also raised guidance for fiscal 2021 with net sales expected to be in the range of $21.73bn-22.23bn, up from initial guidance of $19.75bn-20.75bn.
Macy’s bonds were trading higher – its 6.7% 2028s were up 3.5 to 109.2, yielding 5.2% and its 5.125% 2042s were up 4.3 to 91.5, yielding 5.8%.
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