Despite a boost in online sales due to the ongoing coronavirus pandemic, Macy’s has still swung to a loss.
Despite cost-cutting efforts such as cutting 3 per cent (or 3900 corporate jobs) of its workforce Macy’s have seen a net loss of $431M, or $1.39 a share, compared with last year’s profit of $86M or 28 cents a share in the same period. The brand’s digital sales have seen a boost of 53 per cent from a year earlier; this has helped report a narrower loss and higher overall revenue than expected.
Chief Executive Office Jeff Gennette has commented that Macy’s is still planning conservatively for the remainder of 2020, a decision that reflects the uncertainty in the industry. The retailer is planning for its same-store sales to be down in the 20 per cent range during the fall season.
The company hasn’t provided a financial forecast.
