The ETF has roughly equal weightings in more than 100 stocks. Many of the mall-based companies that investors left for dead in 2020 during the pandemic but have since roared back to life this year are more responsible for powering the ETF’s stellar 2021 performance.
Macy’s reported earnings and sales that topped forecasts Thursday morning and issued a bullish outlook for the holidays. The stock soared more than 20% on the news.
“The consumer is healthy, and we expect the strong demand to continue, particularly as people return to work,” said Macy’s chief financial officer Adrian Mitchell during a conference call with analysts.
Healthy economic tide lifting many retail boats
Just look at how well the two companies that used to be part of the once-struggling L Brands are now doing.
So investors in some of the former retail laggards have to hope that some of these brick and mortar stalwarts will be able to do a better job in the digital commerce realm.
“Let me just say that with Amazon, we continue to be pleased with that partnership,” said Kohl’s CEO Michelle Gass during its earnings call Thursday. “And we continue to see new customers from that program. So we saw that build.”
Gass added that Kohl’s own digital efforts are reaping rewards too, with digital revenue growing from both last year and pre-pandemic levels in 2019. Digital sales now account for nearly 30% of total revenue at Kohl’s.