Shares of Macy’s (NYSE:M) stock are blasting off on Thursday after the company reported its earnings for the second quarter of fiscal year 2021. This comes after reported revenue of $5.65 billion blew past analysts’ estimate of $4.98 billion. Also, Macy’s diluted earnings per share (EPS) of $1.08 crushed Wall Street’s expectation of 14 cents per share.
Additionally, the firm also announced that it is joining forces “with the owner of Toys R Us to bring an assortment of toys, games and other gadgets for kids to more than 400 of the department store chain’s locations and online.” That’s massive news for the beloved toy store that went bankrupt in 2017.
Moreover, here’s what else is worth mentioning from the most recent Macy’s earnings report:
- Diluted EPS jumped 177% from a loss per share of 5 cents during Q2 2020.
- Revenue for the quarter comes 58.7% higher year-over-year (YoY) compared to $3.56 billion in Q2 2020.
- Operating income of $597 million is much better than the prior year’s figure of a $631 million loss.
- The Macy’s earnings report also includes net income of $345 million.
- That’s incredibly better compared to a net loss of $431 million during the same time last year.
Jeff Gennette, chairman and chief executive officer of Macy’s, said this regarding the M stock earnings report.
“Second-quarter results were strong across all three nameplates and surpassed our expectations. Our momentum in the first quarter accelerated in the second quarter as we successfully reengaged core customers and attracted new, younger customers with new brands and categories.”
The company also boosted its previous FY2021 guidance for revenue and diluted EPS in the earnings release. This included revenue to be between $23.55 billion and $23.95 billion and EPS to reach between $3.41 and $3.75 per share.
M stock was up 17.5% as of Thursday afternoon.
On the date of publication, Nick Clarkson did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
Nick Clarkson is a web editor at InvestorPlace.