Macy's forecasts upbeat annual profit, shares surge

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March 2 (Reuters) - Macy's Inc (M.N) forecast full-year profit largely above Wall Street estimates on Thursday, as the department store operator looks to cut back on promotions to protect its margins.

Shares of the company rose about 7% in premarket trading.

The company said it expects adjusted full-year profit per share between $3.67 and $4.11, while analysts on an average had estimated $3.84, according to IBES data from Refinitiv.

Macy's sees 2023 sales between $23.7 billion and $24.2 billion, compared to estimates of $24.29 billion.

Consumers at the higher end of the income rung have shrugged off a hit to savings from stubbornly high inflation, helping boost sales at department stores like Macy's that mostly offer luxury and discretionary items.

However, peer Kohl's Corp (KSS.N), which caters more to inflation-hit lower-income customers posted a surprise quarterly loss and forecast full-year profit well below estimates as deep discounts to boost demand shredded the retailer's margins.

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Reporting by Ananya Mariam Rajesh and Anne Florentyna Gnanaraja Sekar in Bengaluru; Editing by Anil D'Silva and Saumyadeb Chakrabarty

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