Macy’s reports first-quarter loss but does not expect ‘another full shutdown’

Business

Macy’s at Valencia Town Center Mall opens for curbside pickup service during COVID-19 outbreak on May 21, 2020 in Santa Clarita, California.

Robin L Marshall | Getty Images

Macy’s on Wednesday said it swung to a first-quarter loss, in line with the retailer’s previously announced estimates, as its business took a hit from the coronavirus pandemic and its sales were nearly cut in half. 

Chief Executive Jeff Gennette said in a statement that nearly all of the company’s stores have since reopened and are performing ahead of expectations this month, but did not provide any other further details. He added that the department store chain continues to expect a “gradual sales recovery.” 

“We do not anticipate another full shutdown, but we are staying flexible and are prepared to address increases in cases on a regional level,” he said. 

Macy’s shares were falling around 1% in premarket trading. 

Here’s how the company did during its fiscal first quarter endi’ed May 2: 

  • Loss per share: $2.03, adjusted 
  • Revenue: $3.02 billion 

Macy’s reported a net loss of $3.58 billion, or $11.53 per share, compared with net income of $136 million, or 44 cents a share, a year ago. Excluding one-time charges, it lost $2.03 per share. 

Revenue declined to $3.03 billion from $5.50 billion a year ago. 

Analysts have been calling for Macy’s to report a loss of $2.03 per share on revenue of $3.01 billion, according to Refinitiv data. 

Macy’s had previously on May 21 pre-announced its first-quarter earnings

Macy’s is not offering a 2020 outlook at this time. 

Macy’s shares as of Tuesday’s market close had fallen nearly 60% this year. The company has a market cap of $2.1 billion. 

Here is the full press release from Macy’s. 

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