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Macy’s shares soar over 21% on Thursday, third-quarter profit well above estimates, full-year guidance revised up

Macy’s Inc’s (M) fiscal third-quarter results, reported on Thursday, outstripped Wall Street estimates, while the retailer revised up its full-year sales and earnings forecasts.

The company’s net sales surged 36.3% year-on-year to $5.44 billion in the fiscal third quarter, while exceeding a consensus of analyst estimates of $5.2 billion.

The group’s adjusted earnings for the three months ending in October were reported at $1.23 per share, compared with a loss of $0.19 per share during the same period a year ago. Analysts on average had expected earnings of $0.31 per share.

For the full year, the company forecasts net sales within the range of $24.1 billion to $24.3 billion, an upward revision from the previously expected range of $23.55 billion to $23.95 billion.

Meanwhile, full-year adjusted earnings are expected to come in within the range of $4.57 to $4.76 per share.

“Our company delivered another strong quarter and exceeded our expectations on both top and bottom lines. The results were driven by the effective execution of the Polaris strategy and an improved economic environment. In the quarter, the Macy’s brand added 4.4 million new customers,” Macy’s Chief Executive Officer Jeff Gennette said in a statement.

“Looking ahead to the fourth quarter, we remain a special place for holiday shopping, and our robust omnichannel ecosystem is showing resilience in the face of labor and supply chain challenges and enables us to meet customer shopping needs with speed and convenience,” the CEO added.

Macy’s shares closed higher for the fifth time in the past ten trading sessions in New York on Thursday. It has also been the sharpest single-session gain in more than 3 years. The stock went up 21.17% ($6.53) to $37.37, after touching an intraday high at $37.90. The latter has been a price level not seen since November 12th 2018 ($38.35).

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