Macy's: posts first-quarter loss as sales plunge
(CercleFinance.com) - Macy's swung to a loss in its fiscal first quarter, hurt by the Covid-19 pandemic that ravaged its sales, but the department store operator's shares rose after it said that reopened stores were performing "better than anticipated.
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Macy's in the quarter reported a preliminary net loss of 652 million dollars, or 2.10 dollars a share, compared with a profit of 136 million dollars, or 44 cents a share a year ago.
First-quarter net sales slumped 45% to 3 billion dollars.
By 1 June, the retailer said that 450 out of 775 of its stores had been reopened, with the majority opened in their full format.
Reopened stores are performing better than anticipated, it added, with positive feedback on curbside pickup and efforts to create a safe and welcoming shopping environment.
"We are seeing strong sell-through of seasonal merchandise, and anticipate that we will exit the second quarter in a clean inventory position", said CEO Jeff Gennette, who still pointed out that the holiday season will be "crucial".
Macy's shares were up 9% in pre-market trading on the New York Stock Exchange on Tuesday.
Copyright (c) 2020 CercleFinance.com. All rights reserved.
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Macy's in the quarter reported a preliminary net loss of 652 million dollars, or 2.10 dollars a share, compared with a profit of 136 million dollars, or 44 cents a share a year ago.
First-quarter net sales slumped 45% to 3 billion dollars.
By 1 June, the retailer said that 450 out of 775 of its stores had been reopened, with the majority opened in their full format.
Reopened stores are performing better than anticipated, it added, with positive feedback on curbside pickup and efforts to create a safe and welcoming shopping environment.
"We are seeing strong sell-through of seasonal merchandise, and anticipate that we will exit the second quarter in a clean inventory position", said CEO Jeff Gennette, who still pointed out that the holiday season will be "crucial".
Macy's shares were up 9% in pre-market trading on the New York Stock Exchange on Tuesday.
Copyright (c) 2020 CercleFinance.com. All rights reserved.