Macy's shares fall as same-store sales drop more than 20%

People walk past a Macy’s store in a Manhattan shopping district on August 12, 2020 in New York City. Following a massive drop in tourism due to the Covid-19 pandemic and a work culture that increasingly keeps people at home, New York City is seeing a large exodus of chain stores and other retail businesses. Many of these businesses were struggling before the Covid outbreak due to the growing trend of online shopping and the situation has only worsened since. According to the commercial real estate services firm CBRE, average asking rents along 16 major retail areas in Manhattan have declined for the eleventh consecutive quarter.
Spencer Platt | Getty Images

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.

Find the full earnings press release from Macy’s here.

This story is developing. Please check back for updates.

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