MACY'S SHARES RISE 14% AFTER THE NETWORK RETURNS TO DIVIDEND PAYMENT
Investors reacted positively to the announcement that the retailer will again pay quarterly dividends. In addition, Macy's second-quarter results were better than analysts' forecasts.
Shares of the American department store chain Macy's at the New York Stock Exchange trading soared by 14.11% - to $ 20.62 as of 17:10 Moscow time. The retailer announced the resumption of regular quarterly dividend payments of $ 0.15 per common share. Dividends will be paid on October 1 - in order to receive them, you need to own shares in the companies until September 15.
In addition, the retail chain presented better-than-expected quarterly results, as well as raised its forecast for financial results for the full year of 2021 and announced a $ 500 million share buyback program.
The chain's revenue for the quarter increased by 59% - to $ 5.65 billion (forecast - $ 4.98 billion). Adjusted earnings were $ 1.29 per share, well above FactSet's expectations of $ 0.23 per share.
Like-for-like sales at the same stores increased 62.2% compared to the second quarter of 2020. Online sales were down 6%, but the company attributed the drop in online store sales to more customers using brick-and-mortar stores that were fully reopened.
The retailer has raised its financial results forecast for the full year of 2021. Macy's expects sales this year to range from $ 23.55 billion to $ 23.95 billion, up from a previous forecast of $ 21.73-22.23 billion. Adjusted earnings per share forecast has been raised from $ 1.71-2.12 to $ 3 , 41-3.75.