Macy’s reports first-quarter loss but does not expect ‘another full shutdown’

Macy’s said Wednesday it swung to a first-quarter loss, in line with its previously announced estimates, as the coronavirus pandemic helped slice sales nearly in half. 

Chief Executive Jeff Gennette said that nearly all of the company’s stores have since reopened and are performing ahead of expectations this month. He did not provide specifics but added that the department store chain continues to expect a “gradual sales recovery.” 

“We do not anticipate another full shutdown, but we are staying flexible and are prepared to address increases in cases on a regional level,” he said. 

Macy’s shares were down 1.5% in premarket trading. 

Here’s how the company did during its fiscal first quarter ended May 2: 

• Loss per share: $2.03, adjusted 
• Revenue: $3.02 billion 

Macy’s reported a net loss of $3.58 billion, or $11.53 per share, compared with net income of $136 million, or 44 cents a share, a year earlier. Excluding one-time charges, it lost $2.03 per share. 

Revenue declined to $3.03 billion from $5.50 billion a year ago. 

Analysts have been calling for Macy’s to report a loss of $2.03 per share on revenue of $3.01 billion, according to Refinitiv data. 

Macy’s, which pre-announced its first-quarter earnings on May 21, is not offering a 2020 outlook at this time. 

Macy’s shares as of Tuesday’s market close had fallen nearly 60% this year. The company has a market cap of $2.1 billion. 

Here is the full press release from Macy’s.