Macy’s Inc., Kohl’s Corp. and Coach parent Tapestry Inc. reported big quarterly sales gains on Thursday, but it is unclear how long the shopping spree will last in the face of new pandemic restrictions to counteract rising coronavirus cases.
Macy’s sales at stores open at least a year jumped 62% in the three months to July 31, compared with a year ago. Same-store sales also grew slightly compared with the same period in 2019. Net sales of $5.65 billion exceeded both 2020 and 2019 levels.
“We’ve come through what I hope is the worst of the pandemic,” Macy’s CEO Jeff Gennette said on a conference call. In an interview, he said that he hasn’t seen any evidence yet of slowing sales due to the virus surge, noting that back-to-school sales have been strong as have sales of work clothes and for social occasions. He said the bigger concerns were supply-chain problems and labor shortages.
Sales at Kohl’s and Tapestry also returned to pre-pandemic levels. Both companies reported sales and earnings that beat analyst expectations and Kohl’s, like Macy’s, raised its guidance for the full year.
Macy’s shares rose more than 15% in morning trading after nearly tripling over the past year through Wednesday’s close. Kohl’s shares jumped more than 8%, but Tapestry’s stock declined nearly 3% in morning trading.
