Macy’s Inc. raised its annual profit forecast on Thursday, helped by strong demand for high-margin apparel from consumers returning to weddings and other social events, even as red-hot inflation saps consumer spending power.
Macy’s joined rival Nordstrom Inc. in bucking a trend of profit warnings from major retailers who are seeing consumers prioritize spending on household essentials.
Macy’s, hit hard by store closures during the pandemic, said consumers were shifting back to in-store shopping from online faster than expected as they ditched casual and athleisure apparel for more expensive dresses, formal wear, and shoes.
“(The shift in demand) contributed to an increase in store foot traffic as consumers are more likely to shop in person for occasion-based apparel,” Macy’s Chief Executive Officer Jeff Gennette said….