Macy’s same-store sales drop more than 20%, as Covid threatens holidays

Earnings

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 on Thursday reported a quarterly same-store sales decline of more than 20%, as consumers continued to cut back their spending on clothes and accessories at America’s department stores during the coronavirus pandemic.

Its 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

As of Wednesday’s market close, Macy’s shares are down about 47% this year. The company has 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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