American department store chains delivered strong results for the fiscal third quarter. Even though they are grappling with surging costs and snarled supply chains heading into the holiday shopping season they’re rerouting shipping to less congested ports to get goods onto shelves and are paying higher wages and expanding benefits for its workers amid a tight labor market.

Sales at Macy’s stores rose 35.6 per cent. The company booked strong sales of home goods, fragrances, jewelry, watches and sleepwear. Categories like dresses, men's tailored clothing and luggage continue to recover. Macy’s added 4.4 million new customers, a 28 per cent increase over 2019. Macy’s was able to increase inventory 19.4 per cent compared with last year's third quarter and will launch a third-party marketplace that will expand its assortment of product categories and brands.

For Kohl’s sales rose 15.5 per cent. The launch of Sephora shops at Kohl’s is getting a good response so far, with 25 per cent of those customers new to the retailer. They are also younger and more diverse. Overall inventory is down 25 per cent compared to 2019; women’s inventory is down even more. The company’s activewear is enjoying strong sales. Both companies have raised their annual financial outlooks.