Macy got a bigger-than-expected boost on the internet in the last quarter, even as its stores reopened during the coronavirus pandemic.
The department store’s digital sales rose 53% from a year earlier as more shoppers visited its website to buy workout clothes and home decor. This helped him report a smaller loss and higher overall revenue than analysts had expected.
However, with so much uncertainty in the industry before the crucial holiday season, CEO Jeff Gennette said Macy’s was planning conservatively for the rest of 2020 and the company did not provide financial forecasts.
Macy shares rose about 5% in pre-market trading.
See how the retailer did in the second quarter of the fiscal year ending August 1 compared to what analysts expected, based on Refinitiv data:
- Loss per share: 81 cents against a loss of $ 1.77, as expected
- Revenue: $ 3.56 billion for $ 3.48 billion, it is expected
Macy had a net loss of $ 431 million, or $ 1.39 a share, compared with a profit of $ 86 million, or 28 cents a year, a year earlier. Excluding one-off charges, it lost 81 cents a share, better than the $ 1.77 loss per share analysts had forecast.
Macy’s net sales fell 35.8% to $ 3.56 billion from $ 5.55 billion a year earlier, but exceeded expectations of $ 3.48 billion.
Online sales and Macy stores open for at least 12 months, privately owned and licensed, fell 35.1%. Analysts were calling for a 28.2% reduction, according to Refinitiv estimates.
Macy’s said its digital sales accounted for 54% of its total comparable sales, with its stores closing for a 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 stocks fell by 29% from a year ago.
Department stores in America have struggled more than other retailers through the coronavirus virus crisis. A number, including Neiman Marcus and Stage Stores, have filed for bankruptcy in 2020. Increasingly, it seems that these companies are not considered worthy of rescue. Lord & Taylor, after nearly two centuries in business, announced last week that it was clearing its remaining 38 stores. And Talks between bidders to save JC Penney from bankruptcy hit a dead end, leaving corporate lenders to reach a last-minute deal for survival.
Macy’s stock has been below 58% since closing on Tuesday. It has a market cap of $ 2.2 billion.