Macy’s International Online, the world’s largest online retailer, posted a profit of $1,248 million for the three months ended June 30, an increase of 8.7 percent over the same period a year earlier.
The company said the profit was fueled by the continued growth of online shoppers, particularly in China, where online sales were up 20.7% in the three-month period compared with the same quarter last year.
Macy’s is also seeing increased online revenue from the company’s new online store, which will be launched in July.
The retailer reported a $1 billion net profit for the quarter ending June 30.
It said online sales rose 17.7%, reflecting the growth of shoppers looking to shop on the go.
Macys also reported its online store was the top-selling online retail site in the United States for the fourth straight quarter.
The online store will be available in more than 100 countries and offer a wide variety of apparel, shoes, home furnishings and other products.
The Macy’s store is scheduled to open in early July.
Macy’s also said it expects to post adjusted quarterly adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) of $3.5 billion to $3,737 million, up from a year ago.
Analysts surveyed by Reuters had expected adjusted EAVA (earning before interest expense, taxes and depreciation) of between $2.6 billion and $3 billion.
The company also said its U.S. online sales increased 18.4% to $17.5 million, a 1.7 percentage point increase.
Analyst had forecast online sales to grow just 3.7%.
The Macy’s profit was also boosted by the company making a series of acquisitions in the quarter.
Macy has said it has acquired a $20 million-plus stake in the online-retailing firm iRobot and a $9 million stake in e-commerce company JCPenney.
Macy said it will begin selling JCPensons products through its online outlet.
Macy’s also reported an increase in sales of clothing, footwear, home goods and consumer electronics.
The store also said online shopping was the fastest growing segment of the company, growing by 15.5% in Q1, a rise of 8%.
Marilyn Todman, senior director of global corporate communications at Macy’s, said the company is focused on growing its online sales and the e-tailers are providing us with more opportunities to expand our presence online.
“Our focus remains on growing Macy’s globally through our acquisitions and investments in ecommerce companies and the apparel and consumer products businesses,” she said in a statement.