The department store operator’s digital sales increased 53% from a year earlier, as more shoppers visited its website to purchase workout clothes and home decor. This helped analysts report a narrow loss and higher total revenue than expected.
Still, with so much uncertainty in the industry ahead of the all-important holiday season, chief executive Jeff Gennett said Macy’s has a conservative plan for the rest of 2020, and the company has not provided a financial forecast.
Macy’s shares were up nearly 5% in prepaid trading.
Here’s what the retailer expected from analysts based on refinitive data on August 1, during its fiscal second quarter:
- Loss per share: Loss of 81 cents vs. $ 1.77, expected
- Revenue: $ 3.56 billion Vs. $ 3.48 billion, expected
Macy’s net loss was $ 431 million, or $ 1.39 per share, compared with a gain of $ 86 million, or 28 cents per share, a year earlier. Excluding the one-time fee, it lost 81 cents a share, better than the $ 1.77 loss per share forecast by analysts.
Macy’s net sales dropped 35.8% to $ 3.56 billion from $ 5.55 billion a year earlier, but exceeded expectations of $ 3.48 billion.
Online sales and Messi’s stores have been open for at least 12 months, declining by 35.1% based on ownership and license. According to Refinitive’s estimates, analysts were calling for a 28.2% drop.
Messi said its digital sales accounted for 54% of the total owned comparable sales, with its stores closed for the quarter.
The company said it ended its strong liquidity position in the second quarter. It had approximately $ 1.4 billion in cash on its balance sheet.
Its inventions were down 29% from a year earlier.
America’s department stores are struggling more than other retailers through the coronovirus crisis. A number including Neiman Marcus and Stage Stores have applied for bankruptcy in 2020. Increasingly, it seems that these companies are not seen as disposable. Lord & Taylor, after nearly two centuries in business, announced last week that it was destroying its remaining 38 stores. And negotiations between bidders to save Jesse Penney from bankruptcy have led to a deadlock, leaving the lenders of the companies to strike some sort of last-minute deal to survive.
Massey’s stock is down more than 58% this year as of Tuesday’s market close. It has a market cap of $ 2.2 billion.
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