Macy’s shares fell Thursday after the company reported a quarterly same-store sales decline of more than 20%, as consumers cut back their spending on clothes and accessories at America’s department stores during the coronavirus pandemic.
Shares dropped more than 2% in premarket trading.
Here’s how the retailer did during its fiscal third quarter ended Oct. 31 compared with what analysts were expecting, based on Refinitiv data:
- Earnings per share: a loss of 19 cents, adjusted, vs. a loss of 79 cents expected
- Revenue: $3.99 billion vs. $3.86 billion expected
Macy’s reported a net loss of $91 million, or 29 cents per share, compared with net income of $2 million, or a penny per share, a year earlier. Excluding one-time charges, Macy’s lost 19 cents per share, while analysts were calling for a loss of 79 cents per share.
Net sales fell to $3.99 billion from $5.17 billion a year earlier. The latest quarterly results were ahead of analysts’ estimates of $3.86 billion.
Same-store sales on an owned plus licensed basis were down 20.2%, while analysts had been calling for a 23.3% decline.
Digital sales grew 27%, but those gains weren’t enough to offset losses at its stores.
As of Wednesday’s market close, Macy’s shares were down about 47% this year, giving the company a market cap of $2.8 billion.
This story is developing. Please check back for updates.
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