macy’s-same-store-sales-fall-35.1%,-despite-stronger-than-expected-online-growth

Macy’s same-store sales fall 35.1%, despite stronger-than-expected online growth

An indoor shopping mall is seen before having to close due to new restrictions by the State of California during the global outbreak of the coronavirus disease (COVID-19) in Carlsbad, California, U.S., July 14, 2020.

Mike Blake | Reuters

Macy’s said Wednesday its same-store sales tumbled 35.1% during the second quarter, despite a strong showing online. 

Its digital sales were up 53% from a year ago, it said, as more shoppers visited its website during the coronavirus pandemic to buy workout clothes and home decor. 

“We are encouraged by our second quarter performance; however, we continue to approach the back half of the

year conservatively,” Chief Executive Jeff Gennette said in a statement. 

Here’s how the retailer did during its fiscal second quarter compared with what analysts were expecting, based on Refinitiv data: 

  • Loss per share: 81 cents vs. a loss of $1.77, expected 
  • Revenue: $3.56 billion vs. $3.48 billion, expected

America’s department stores have been struggling more than other retailers through the coronavirus crisis. A number, including Neiman Marcus and Stage Stores, have filed for bankruptcy in 2020. Increasingly, it seems, these companies aren’t viewed as worth salvaging. Lord & Taylor, after nearly two centuries in business, announced last week it is liquidating its remaining 38 stores. And talks among bidders to rescue J.C. Penney from bankruptcy have hit a stalemate, leaving it up to the companies’ lenders to strike some sort of last-minute deal for survival. 

Macy’s stock as of Tuesday’s market close is down more than 58% this year. It has a market cap of $2.2 billion. 

Find the full earnings press release from Macy’s here

This story is developing. Please check back for updates. 

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