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Strong demand for luxury goods and an easing of supply chain issues helped support a better-than-expected quarter for Macy’s, prompting the high-end department store retailer to raise its overall earnings forecast. ‘year.

The New York-based company reaffirmed its sales guidance, but expects full-year earnings, on an adjusted basis, to be between $4.53 and $4.95 per share, down from previous expectations of $4.13. at $4.52.

Investors welcome the upgrade, and Macy’s shares jumped 14% in premarket trading Thursday.

Comparable sales, a popular industry measure, rose 12.8% year-on-year in the three months to the end of April. Net sales rose 13.6% to $5.3 billion, narrowly beating analysts’ forecasts for the quarter.

Earnings at some U.S. retailers, like Walmart and Target, have taken a hit recently as decades-high inflation has shifted consumer behavior toward lower-priced goods. However, Macy’s said its customers seemed resilient and had purchased more expensive items like luggage and bespoke clothing.

“As macroeconomic pressures on consumer spending increased in the quarter, our customers continued to shop,” said Chief Executive Officer Jeff Gennette. “We saw a noticeable return to second-hand clothing and in-store shopping, as well as continued strength in luxury goods sales.”

Luxury fashion retailer Ralph Lauren and high-end homewares retailer Williams Sonoma reported strong earnings in their final quarters this week, a sign that demand from less price-sensitive consumers remains resilient despite inflation. .

Macy’s gross margin widened in the first quarter and was 39.6% from 38.6% in the first quarter.

The company reported net income of $286 million, down from $103 million a year ago, and beating analysts’ expectations of $252.3 million.

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