RAPAPORT... Jewelry was one of the strongest categories at Macy’s during the fourth fiscal quarter, buoyed by strong demand and the addition of store-in-store Pandora boutiques at five of its locations.
“In November, we launched Pandora in five stores,” Macy’s CEO Jeff Gennette said Tuesday in an earnings call transcribed by The Motley Fool. “The fine-jewelry business in those stores saw an incremental 23% increase in sales growth over 2019 from the new assortment.”
The Pandora shops, which are currently in Texas, New York and Atlanta, attract younger customers to Macy’s, Gennette explained. Therefore, Macy’s intends to expand its Pandora store count to 28 locations this year, he noted.
The strength of jewelry and other luxury categories drove results that exceeded expectations, Macy’s said. Group revenue surged 28% to $8.67 billion in the three months ending January 29, while comparable-store sales — at owned and licensed shops open for at least a year — also rose 28%.
“Categories that were solid throughout the pandemic, including home, fragrances, jewelry, watches and sleepwear, continued to see strong sales performance,” Gennette said. “Results were driven by strong sales of luxury handbags, fine jewelry, men’s shoes and contemporary, fragrances and home.”
The company’s Bloomingdale’s chain, which is popular with affluent customers, continued to see robust jewelry sales throughout the quarter, the executive stated.
Macy’s will focus on furniture, men’s tailored clothing, women’s shoes, beauty, dresses and jewelry, and watches, which have remained strong. It intends to build up those categories to increase their appeal to customers, the company said.
Sales for the full year soared 41% to $24.46 billion, while Macy’s reported a profit of $1.43 billion, compared to a loss of $3.94 billion in 2020.
Image: The Macy’s Herald Square store in New York. (Shutterstock)
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