Although its stores began to reopen during the Corona virus outbreak, Macy’s Online received a bigger boost than expected in the recent quarter.
The department store operator’s digital sales jumped 53% from a year earlier as more shoppers visited its website to buy workout clothing and home decor. This helped analysts report shorter losses and overall returns than expected.
However, with so much uncertainty in the industry ahead of all the important holidays, CEO Jeff Jennett said that Macy’s is planning to be conservative for the rest of 2020 and that the company has not provided a financial forecast.
Macy’s shares rose as much as 5% in the booking trade.
- Loss per share: 77 1.77 loss against 81 cents, expected
- Revenue: 6 3.56 billion Against 48 3.48 billion, expected
Macy’s net loss was $ 431 million, or $ 1.39 a share, $ 86 million a year ago, or 28 cents a share. Excluding one-time fees, it lost 81 cents per share, which is better than the loss of 77 1.77 per analyst.
Macy’s net sales were down 35.8% to $ 3.56 billion from $ 5.55 billion a year earlier, but this was higher than expected at $ 3.48 billion.
Sales, which have been open for at least 12 months at online and Macy’s stores, have fallen 35.1% on a proprietary and licensed basis. According to Refinitive estimates, analysts are calling for a 28.2% drop.
Macis accounts for 54% of its total sales comparable to its digital sales, with its stores closing quarterly.
The company said the second quarter ended with strong cash flow. Its balance sheet stood at about $ 4 1.4 billion.
Its inventory is down 29% from a year ago.
Department Stores of America More and more retailers are struggling with the corona virus crisis. Neyman Marcus, Stage Stores and others have filed for bankruptcy in 2020. Increasingly, these companies are not considered sustainable. Lord & Taylor announced last week that it would close its remaining 38 stores after nearly two centuries in business. And Negotiations with bidders to rescue JC Penny from bankruptcy come to a standstill, Leaving it to companies’ lenders to attack some sort of last-minute deal for survival.
Macy’s stock is down more than 58% this year due to the market crisis on Tuesday. Its market cap is 2.2 billion.