© Reuters. FILE PHOTO: Shoppers are seen outside Macy’s in the Manhattan borough of New York City, New York, U.S., March 30, 2021. REUTERS/Caitlin Ochs
(Reuters) – Upscale department store chain Macy’s Inc (NYSE:) raised its annual profit forecast on Thursday on resilient demand for high-end suits, gowns and beauty products as wealthier shoppers were undeterred by inflation.
Shares of the company rose 5% to $20.75 in premarket trading.
Like other retailers, Macy’s has introduced more discounts to clear excess stock of casual and athleisure apparel, while luxury goods sales has held up relatively well. European high fashion companies including Hermes and Pernod Ricard (EPA:) have said they would continue to raise prices heading into the crucial holiday season, signaling no fear of any slowdown in demand from the wealthy.
The department store chain said it expects fiscal 2022 adjusted profit of $4.07 to $4.27 per share compared with its previous forecast of $4 to $4.20.
Net sales at the department store chain fell to $5.23 billion in the third quarter ended Oct, 29 compared with $5.44 billion a year earlier.
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