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.
Macy’s shares rose more than 6% in premarket trading.
“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
Sales online and at Macy’s stores open for at least 12 months, on and owned plus licensed basis, were down 35.1%. Analysts had been calling for a decline of 28.2%, according to Refinitiv estimates.
The department store operator is not offering an outlook for the remainder of the year.
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.