Macy’s said Tuesday that it turned a profit for the first time in the pandemic, making $160 million during the 13 weeks ended Jan. 30, down from $340 million in the same stretch a year ago.
To be sure, Macy’s is still struggling. Sales at stores open for at least one year dropped 17.1% during the period. Net sales dropped to $6.8 billion, from $8.3 billion during the same quarter last year.
Neil Saunders, managing director at GlobalData Retail, said in a note to clients that the results were a “marked improvement” and show that Macy’s is “slowly climbing its way out of the depths.”
Macy’s believes this coming year will be better than the last one.
It expects “continued pandemic-related challenges in the spring season,” but with “momentum building” in the second half of the year.
The company, in particular, is betting on strong growth online in the coming years.
“We anticipate annual digital sales to reach $10 billion within the next three years, and that digital will become an even more profitable contributor to our business,” CEO Jeff Gennette said.