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Macy’s (M) reported a loss for Q3 2020, declining sales

People walk past Macy’s store in the Manhattan shopping district on August 12, 2020 in New York. After a huge drop in tourism due to the Covid-19 pandemic and a work culture that increasingly keeps people at home, New York is seeing a large exodus of chain stores and other retail businesses. Many of these companies struggled before the Covid outbreak due to the growing trend of online shopping, and the situation has only worsened since then. According to real estate services firm CBRE, average rents for 1

6 major retail spaces in Manhattan fell for the eleventh consecutive quarter.

Spencer Platt Getty Images

Shares of Macy fell on Thursday after the company reported a three-month drop in sales in the same store by more than 20% as consumers reduced their spending on clothing and accessories in US department stores during the coronavirus pandemic.

Shares fell more than 2% in pre-trading.

Here’s how the retailer fared in its third fiscal quarter, which ended Oct. 31, compared to analysts’ expectations based on Refinitiv data:

  • Earnings per share: loss of 19 cents, adjusted against expected loss of 79 cents
  • Revenue: $ 3.99 billion versus the expected $ 3.86 billion

Macy’s reported a net loss of $ 91 million, or 29 cents a share, compared to a net profit of $ 2 million, or a penny per share, a year earlier. Excluding one-time fees, Macy’s lost 19 cents a share, while analysts insisted on a loss of 79 cents a share.

Net sales fell to $ 3.99 billion from $ 5.17 billion a year earlier. The latest quarterly results outpaced analysts’ estimates of $ 3.86 billion.

Sales of the same stores on their own plus a licensed basis decreased by 20.2%, while analysts called for a decline of 23.3%.

Digital sales rose 27%, but those profits were not enough to offset losses in its stores.

As of Wednesday’s market close, Macy’s shares fell about 47 percent this year, giving the company a market capitalization of $ 2.8 billion.

Find the full press release from Macy’s here.

This story is evolving. Please check again for updates.

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