Macy’s on Thursday (Aug. 19) expressed excitement about its second-quarter earnings, saying the showing was enough for the company to boost its fiscal 2021 guidance by almost $2 billion.
The company also said it’s bringing the Toys R Us brand to its website immediately and into more than 400 retail stores in 2022, as part of a new partnership with WHP Global, which acquired a controlling interest in the toy brand earlier this year.
“We have meaningfully improved the fundamentals and overall health of our business, and we are well underway building a stronger Macy’s, Inc. for the future,” said Jeff Gennette, chairman and chief executive officer of Macy’s, Inc., in the company announcement.
The Toys R Us return is part of Macy’s exponential growth in the toy segment of its business in the past year.
“As a Toys R Us kid, I could not be more excited to bring this beloved brand that so many of our customers know and love into Macy’s online and to our stores across America,” said Nata Dvir, Macy’s chief merchandising officer, in the company announcement.
For the second quarter of 2021, Macy’s saw comparable sales go up 61.2 percent on an owned basis and up 62.2 percent on an owned plus licensed basis versus 2020. The company reported a trend improvement of approximately 16 percentage points from the first quarter of 2021.
Digital sales dipped 6 percent in the second quarter of 2020, but were up 45 percent compared to the same time in 2019. That slowdown is attributed to more shoppers returning to Macy’s stores this year. More than 40 percent of the five million new Macy’s customers came through its digital channel in the second quarter.
The average Platinum, Gold and Silver Star Rewards Loyalty program member spent 15 percent more than in 2019 and about 5 percent more than in the first quarter of 2021. Macy’s added about two million Bronze loyalty program members in the second quarter.
In May, Macy’s partnered with buy now, pay later (BNPL) firm Klarna to offer its “Pay in 4” option across all Macy’s brands and websites. Customers can pay in four interest-free installments with Klarna on Macys.com, Bloomingdales.com and Bluemercury.com and across about 750 U.S. retail locations.