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Macy’s Inc (M) on Tuesday projected full-year 2021 revenue well above Wall Street estimates, as progress in vaccine rollouts would allow clients to return to its department stores following pandemic-related restrictions.

Macy’s said it now forecast full-year sales within the range of $19.75 billion to $20.75 billion, which compares with a consensus of analyst estimates of $20.13 billion.

Macy’s shares closed higher for a third consecutive trading session in New York on Tuesday. The stock went up 3.93% ($0.60) to $15.88, after touching an intraday high at $16.05, or a price level not seen since January 29th ($16.88).

Shares of Macy’s Inc have risen 41.16% so far in 2021 compared with a 3.34% gain for the benchmark index, S&P 500 (SPX).

In 2020, Macy’s Inc’s stock went down 33.82%, thus, it underperformed the S&P 500, which registered a 16.26% gain.

The company’s net sales dropped 19% year-on-year to $6.78 billion during the fourth quarter ended on January 30th, while analysts on average had expected a sharper decrease to $6.50 billion.

At the same time, Macy’s online sales went up 21% year-on-year during the latest quarter, supported by efforts to cut delivery times.

However, the company’s comparable sales on an owned basis shrank 17% year-on-year during the quarter ended on January 30th compared with a median analyst estimate of a 16.60% drop.

Earnings per share, which exclude special items, were reported at $0.80 during the fourth quarter.

Analyst stock price forecast and recommendation

According to CNN Money, the 11 analysts, offering 12-month forecasts regarding Macy’s Inc’s stock price, have a median target of $11.00, with a high estimate of $18.00 and a low estimate of $4.00. The median estimate represents a 30.73% downside compared to the closing price of $15.88 on February 23rd.

The same media also reported that at least 8 out of 15 surveyed investment analysts had rated Macy’s Inc’s stock as “Hold”, while 5 – as “Sell”. On the other hand, 1 analyst had recommended buying the stock.

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