Home Depot Inc. and Macy’s Inc stated that pandemic-powered shopping trends have continued into 2021, driving demand for home improvements and home goods. Executives at both chains also said consumer spending could shift in the second half of the year depending on the course of the health crisis.
The two retailers have been on opposite sides of the coronavirus pandemic. Home Depot’s revenue increased 20% in the company’s latest fiscal year as Americans spent more time-and money-fixing and renovating their homes. Annual sales at Macy’s plummeted almost 30% as consumers bought less apparel for going outside, including to work.
However, the company decided to give a prediction for the entire year citing discouragement regarding the coronavirus, the distribution of vaccines and fiscal policy. “We are limited in our ability to forecast demand for the year, particularly as it relates to the back half,” Mr. McPhail said on Tuesday.
Macy’s Chief Executive Jeff Gennette said he expects the department-store chain’s apparel business to recover toward the second half of the year, as more people get vaccinated and start planning events such as weddings and going back to workplaces.