Microsoft will continue to support customers online, with retail team members working remotely and at Microsoft corporate locations.
REDMOND, Washington – June 26, 2020 – Microsoft Corp. (NASDAQ: MSFT) (“Microsoft”) today announced a strategic change in its retail operations, including the closure of physical Microsoft Store locations. Members of the company’s retail team will continue to serve customers of Microsoft’s corporate facilities and remotely provide sales, training and support. Microsoft will continue to invest in its digital storefronts on Microsoft.com and on Xbox and Windows, reaching more than 1.2 billion people each month in 190 markets. The company will also reimagine spaces that serve all customers, including Microsoft Experience Centers in London, New York, Sydney, and Redmond campuses. The closure of the physical Microsoft Store locations will result in a pre-tax charge of approximately $ 450 million, or $ 0.05 per share, to be recorded in the current quarter ending June 30, 2020. The charge primarily includes amortizations and impairment of assets.
“Our sales have grown online as our product portfolio has evolved into largely digital offerings, and our talented team has proven successful in serving customers beyond any physical location,” said Microsoft Corporate Vice President David Porter. “We thank our Microsoft Store customers and look forward to continuing to serve them online and with our retail sales team at Microsoft corporate offices.”
Since the Microsoft Store locations closed in late March due to the COVID-19 pandemic, the retail team has helped small businesses and education customers transform digitally; Virtually trained hundreds of thousands of business and educational clients in remote work and learning software; and helped customers with support calls. The team supported communities by organizing more than 14,000 online workshops and summer camps and more than 3,000 virtual graduations.
“We deliberately create teams with unique backgrounds and abilities that could serve clients from anywhere. The evolution of our workforce ensured that we were able to continue serving clients of all sizes when they needed us most, working remotely in recent months, ”said Porter. “Speaking more than 120 languages, its diversity reflects the many communities we serve. Our commitment to growth and career development for this talent pool is stronger than ever. ”
Retail team members will serve consumers, small businesses, education and business customers, while creating a portfolio of talents with transferable skills.
“The Microsoft Store team has long been celebrated at Microsoft and embodies our culture,” said Microsoft Director of Personnel Kathleen Hogan. “The team has a proven track record of attracting, motivating, and developing diverse talents. This infusion of talent is invaluable to Microsoft and creates opportunities for thousands of people. “
With significant growth through its digital storefronts, including Microsoft.com, and stores on Xbox and Windows, the company will continue to invest in digital innovation in software and hardware. New services include 1: 1 video chat support, online video tutorials, and virtual workshops with more digital solutions to come.
“It is a new day of how Microsoft Store team members will serve all customers,” said Porter. “We are excited about the opportunity to innovate in the way we interact with all clients, maximize our talent to make the most impact, and most importantly, help our valued clients achieve more.”
Microsoft (Nasdaq “MSFT” @microsoft) enables digital transformation for the era of a smart cloud and a smart lead. Its mission is to empower every person and every organization on the planet to achieve more.
Statements in this release that are “forward-looking statements” are based on current expectations and assumptions that are subject to risks and uncertainties. Actual results may differ materially due to factors such as:
- intense competition in all our markets that can lead to lower revenues or operating margins;
- increasing focus on cloud-based services that pose competitive and execution risks;
- significant investments in products and services that may not achieve the expected returns;
- acquisitions, joint ventures and strategic alliances that may have an adverse effect on our business;
- impairment of goodwill or amortizable intangible assets that cause a significant charge to earnings;
- Cyber attacks and security vulnerabilities that could lead to reduced revenues, higher costs, liability claims, or damage to our reputation or competitive position;
- disclosure and misuse of personal data that could cause liability and damage to our reputation;
- the possibility that we may not protect the information stored in our products and services from the use of third parties;
- abuse of our advertising or social platforms that can damage our reputation or user participation;
- internet development of things that present security, privacy and enforcement risks;
- problems with the use of artificial intelligence in our offerings that may result in competitive damage, legal liability or reputational damage;
- excessive disruptions, data loss, and disruptions to our online services if we do not maintain an adequate operating infrastructure;
- quality or supply problems;
- the possibility that we may not be able to protect our source code;
- Legal changes, our evolving business model, piracy, and other factors can diminish the value of our intellectual property;
- claims that Microsoft has infringed on the intellectual property rights of others;
- claims against us that may result in adverse results in legal disputes;
- government litigation and regulatory activities related to competition rules that may limit how we design and market our products;
- potential liability under commercial, anti-corruption and other laws resulting from our global operations;
- laws and regulations related to the handling of personal data that may prevent the adoption of our services or result in increased costs, legal claims, fines or reputational damage;
- additional tax obligations;
- damage to our reputation or our brands that may harm our business and operating results;
- exposure to greater economic and operational uncertainties arising from the operation of a global business, including the effects of foreign currency exchange;
- uncertainties related to our business with government clients;
- adverse economic or market conditions that may harm our business;
- catastrophic events or geopolitical conditions, such as the COVID-19 pandemic, that can interrupt our business; and
- The dependence of our business on our ability to attract and retain talented employees.
For more information about the risks and uncertainties associated with Microsoft’s business, see the “Discussion and Analysis of Financial Position Management and Results of Operations” and “Risk Factors” of SEC filings with Microsoft, including but not limited to its annual report on Form 10-K and quarterly reports on Form 10-Q, copies of which may be obtained by contacting Microsoft’s Investor Relations department at (800) 285-7772 or Microsoft Investor Relations website at http://www.microsoft.com/en-us / investor.
The company makes no commitment to update any forward-looking statements to conform the statement with actual results or changes in company expectations.
For more information, press only:
Microsoft Media Relations, WE Communications for Microsoft, (425) 638-7777, [email protected]
For more information, only financial analysts and investors:
Michael Spencer, General Manager, Investor Relations, (425) 706-4400