Macy's Gives Hope for 2010

Macy's second-quarter results top expectations, as the company ups its outlook.
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NEW YORK (

TheStreet

) --

Macy's

(M) - Get Report

is coming out as one of the strongest retailers for back-to-school, as it ups its full-year outlook.

During the second quarter, the department store earned $147 million, or 35 cents a share, compared with $7 million, or 2 cents in the year-ago period. Last year was impacted by 18 cents in restructuring charges. Analysts were calling for a profit of 29 cents a share for Macy's.

Macy's sales jumped 7% to $5.54 billion from $5.16 billion, while same-store sales grew 4.9%.

Looking ahead, Macy's now expects full-year earnings in the range of $1.85 to $1.90 a share, from a prior outlook of $1.75 to $1.80. Same-store sales are forecast to rise 4.2%, compared with previous guidance of a 3.5% increase.

Macy's has, no doubt, been stealing market share away from underperformers like

J.C. Penney

(JCP) - Get Report

. "

Macy's has been driven by a number of its strategic initiatives, including My Macy's, a centralized organization, continued development of private and exclusive brands, improved associate selling and service skills, and multi-channel integration," Citibank analyst Deborah Weinswig wrote in a note.

Shares of Macy's are rising 4% to $20.16 in morning trading.

-- Reported by Jeanine Poggi in New York.

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