Macy’s (NYSE: M) shares fell 1.5% during premarket trading as they reported first quarter results Wednesday which revealed an adjusted loss per share of USD2.03 on revenue of USD3.02 Billion. The coronavirus pandemic ultimately reduced the company’s sales by half, a reality far from the estimate it had previously predicted.
According to Chief Executive Jeff Gennette, almost all stores have managed to reopen and are doing better than expected. Gennette is optimistic that the retail chain will flourish and anticipates a “gradual sales recovery.”
“The first quarter of 2020 was challenging for the country, the industry and Macy’s, Inc. While our stores are re-opened, we expect that the COVID-19 pandemic will continue to impact the country for the remainder of the year. We do not anticipate another full shutdown, but we are staying flexible and are prepared to address increases in cases on a regional level,” said Jeff Gennette, chairman and chief executive officer of Macy’s, Inc. “We are meeting our customers how and where they are shopping and have enhanced our fulfillment options and health precautions to ensure a safe and welcoming shopping experience.”
The American department store chain reported a net loss of USD3.58 Billion or USD11.53 a share in comparison to last year’s net income of USD136 Million or USD0.44 per share. Additionally, Revenue plummeted USD3.03 Billion from the previous year’s USD5.05 Billion.
Macy’s shares have decreased almost 60% throughout the year and the company is currently not providing a 2020 outlook.
Written by Rebecca Urena.
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