NEW YORK - Macy's Inc.'s net income surged in the second quarter as the department store chain saw a payoff from its focus on exclusive moderate-price fashions and tailoring merchandise to local markets.
The company, based in Cincinnati, boosted its profit outlook and increased its forecast for a key revenue measure as it takes market share from rivals such as J.C. Penney.
"We don't have a crystal ball on the economy, but we do have confidence that we can continue to gain share profitably, no matter the environment," Karen Hoguet, Macy's chief financial officer, told investors during a conference call Wednesday.
Winning signs
The indications that Macy's will be a clear winner as retailers' earnings season gets underway drove its stock up $1.14, or 5.9 percent, to close at $20.52 Wednesday.
The chain said Wednesday that it posted net income of $147 million, or 35 cents per share, for the period ended July 31. That compares with $7 million, or 2 cents per share, in the same period last year.
Revenue rose 7.2 percent to $5.54 billion. For the quarter, revenue at stores opened at least a year increased 4.9 percent. Revenue at stores opened at least a year is considered a key measure of a retailer's health.
Analysts surveyed by Thomson Reuters had expected 28 cents per share on revenue of $5.5 billion.
