Macy’s posted more than expected growth during the last quarter, even as its stores began reopening during the coronavirus pandemic.
The department store operator’s digital sales rose 53% year-over-year as more shoppers visited its website to buy sportswear and furnishings. This helped the company report tighter losses and higher total revenues than analysts expected.
However, with much uncertainty in the industry ahead of an important holiday season, CEO Jeff Gennett said Macy’s is conservatively planning for the rest of 2020 and the company did not provide a financial outlook.
Macy’s was up about 5% premarket.
Here’s how the retailer did in the second fiscal quarter ending August 1, compared to what analysts expected, based on Refinitiv data:
- Loss per share: 81 cents versus an expected loss of $ 1.77.
- Revenue: $ 3.56 billion vs. expected $ 3.48 billion
Macy’s had a net loss of $ 431 million, or $ 1.39 a share, compared with a profit of $ 86 million, or 28 cents a share, a year ago. Excluding one-time payments, it lost 81 cents a share, better than analysts’ forecasts of $ 1.77 a share.
Macy’s net sales fell 35.8% to $ 3.56 billion from $ 5.55 billion a year ago, but that beat expectations of $ 3.48 billion.
Online sales and Macy’s stores that have been open for at least 12 months under the terms of ownership plus licenses were down 35.1%. According to Refinitiv estimates, analysts were expecting a 28.2% decline.
Macy’s said digital sales accounted for 54% of its total comparable sales, with stores closed for the quarter.
The company said it ended the second quarter with a strong liquidity position. He had about $ 1.4 billion in cash on his balance sheet.
Its reserves are down 29% compared to last year.
Department Stores of America are fighting the coronavirus crisis more than other retailers… A number, including Neiman Marcus and Stage Stores, filed for bankruptcy in 2020. Increasingly, it seems that these companies do not deserve to be bailed out. Lord & Taylor, who has been in business for nearly two centuries, announced last week that it will liquidate the remaining 38 stores. AND Negotiations Between Claimants to Save JC Penney from Bankruptcy Deadlockleaving it up to the creditors of the companies to make some last-minute deal to survive.
Macy’s shares have dropped more than 58% this year at the close of trading on Tuesday. Its market capitalization is $ 2.2 billion.
Macy’s full press release on earnings can be found here…
