- Macy’s says its same-store sales slipped 20% in the fiscal third quarter.
- The department store swings to £68.72 million of net loss in Q3.
- Macy’s digital sales jumped 27% amidst the ongoing COVID-19 crisis.
Macy’s Inc. (NYSE: M) published its financial results for the fiscal third quarter on Thursday that highlighted an over 20% decline in same-store sales. The company attributed dovish sales to the Coronavirus pandemic that restricted people to their homes in recent months.
The COVID-19 crisis has so far infected more than 11 million people in the United States and caused over a quarter million deaths. Macy’s had slashed 3,900 corporate jobs or close to 3% of its workforce in June to cushion the economic blow from the ongoing pandemic.
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Macy’s Q3 financial results versus analysts’ estimates
According to Refinitiv, experts had forecast the company to print £2.91 billion of revenue in the third quarter. Their estimate for loss per share stood at 59.66 pence. In its report on Thursday, Macy’s topped both estimates posting a higher £3.01 billion of revenue and a much lower 14.35 pence of loss per share in Q3.
At £68.72 million, the department store chain said that its net loss in the quarter that concluded on 31st October was sharply lower than £1.51 million of net income in the comparable quarter of last year. Macy’s had generated £3.90 billion of net sales in Q3 of the previous year.
In the prior quarter (Q2), Macy’s had recorded £329.19 million of loss, as per the report published in the first week of September.
A 20.2% decline in comparable-store sales (owned plus licensed basis) in the recent quarter was narrower than 23.3% expected. The American holding company also said on Thursday that its digital sales jumped 27% in Q3. The increase in e-commerce sales, however, was not sufficient to offset store losses.
According to Chief Executive Jeff Gennette, sales from Macy’s home furnishings, jewellery, and fragrance segments registered double-digit growth on a year over year basis in the third quarter.
Macy’s performance in the stock market
At £6.91 per share, Macy’s is currently 45% down year to date in the stock market after recovering from an even lower £3.35 per share in the first week of April, when COVID-19 restrictions were at their peak. At the start of the year, Macy’s shares were trading at £12.48 per share – that you can learn to buy online here if you’re interested.
Macy’s performed fairly downbeat in the stock market last year with an annual decline of about 45%. At the time of writing, it is valued at £2.11 billion.