Macy's: posts loss as sales continue to fall
(CercleFinance.com) - Macy's swung to a loss in its fiscal third quarter, hit by a big fall in sales due to the resurgence of Covid-19 and its impact on the retailer's business.
The US department store operator, which owns its namesake and Bloomingdale's chains, said it lost 91 million dollars, or 29 cents a share, in the quarter to 31 October, compared with a token profit of two million dollars, or one cent a share, a year ago.
Macy's said that its sales fell 23% to four billion dollars, down from 5.2 billion dollars a year ago. Sales at its stores that have been open for at least a year - a key retail gauge known as comparable sales - dropped 21%.
Macy's said several categories, including home furnishings, jewelry and fragrances, generated double-digit sales growth year-on-year. Also, its digital sales increased by 27% relative to third quarter 2019.
Investors, however, were not convinced, with Macy's shares down over 4% on the New York Stock Exchange in pre-market trading on Thursday.
Copyright (c) 2020 CercleFinance.com. All rights reserved.
The US department store operator, which owns its namesake and Bloomingdale's chains, said it lost 91 million dollars, or 29 cents a share, in the quarter to 31 October, compared with a token profit of two million dollars, or one cent a share, a year ago.
Macy's said that its sales fell 23% to four billion dollars, down from 5.2 billion dollars a year ago. Sales at its stores that have been open for at least a year - a key retail gauge known as comparable sales - dropped 21%.
Macy's said several categories, including home furnishings, jewelry and fragrances, generated double-digit sales growth year-on-year. Also, its digital sales increased by 27% relative to third quarter 2019.
Investors, however, were not convinced, with Macy's shares down over 4% on the New York Stock Exchange in pre-market trading on Thursday.
Copyright (c) 2020 CercleFinance.com. All rights reserved.