Nov 18 (Reuters) – Macy’s Inc (M.N) and Kohl’s Corp (KSS.N) raised their full-year sales and profit outlook on Thursday as efforts to overcome supply chain issues help the U.S. department store operators stock up shelves in time for the holiday season.
Shares of the retailers jumped 6% in premarket trading as they also surpassed market expectations for third-quarter sales, benefiting from a surge in spending on perfumes, dresses and formal wear by Americans returning to offices and social events.
Retailers have faced pressure this year from shipping logjams, shuttered factories in Asia and a scarcity of raw materials that have caused widespread product shortages.
But moves to expedite shipments to stores earlier in the year helped Macy’s improve its inventory levels by 19.4% in the quarter.
“The company implemented several measures to mitigate supply chain disruptions and does not expect to be materially impacted during the fourth quarter 2021,” it said in a statement.
Macy’s expects full-year net sales of $24.12 billion to $24.28 billion, compared with a previous forecast of $23.55 billion to $23.95 billion.
It forecast 2021 adjusted earnings per share between $4.57 and $4.76, compared with $3.41 to $3.75 previously.
Kohl’s said it expected 2021 net sales to increase in the mid-twenties percentage range, compared with a previous forecast of low-twenties percentage rise.
It expects 2021 adjusted earnings per share of $7.10 to $7.30, compared with a prior forecast of $5.80 to $6.10.
Reporting by Uday Sampath in Bengaluru; Editing by Aditya Soni
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