Macy’s (NYSE:M) said Thursday it expects first-quarter sales to fall by as much as 45%, and it could report a loss of more than $1 billion, as the department store operator was forced to shut stores amid the COVID-19 crisis.
The company also said in an investor presentation, walking through its first-quarter forecast, it expects to have "sufficient liquidity" to execute on its 2020 priorities.
Macy’s is expected to report fiscal first-quarter earnings on July 1, the company previously said, as the pandemic has disrupted its business and delayed the reporting process.
"We expect business to recover gradually," CEO Jeff Gennette said in a statement.
Macy’s said it expects to report an operating loss of between $905 million and $1.11 billion, compared with net income of $203 million a year ago. And it has forecast first-quarter sales to be in the range of $3 billion to $3.03 billion, down from $5.50 billion a year ago.
Macy’s stores were temporarily shut during the coronavirus pandemic on March 18, and are just beginning to reopen across the U.S., in states including South Carolina and Georgia.
As of this week, Macy’s said roughly 190 of its namesake department stores and Bloomingdale’s shops have fully reopened. The company said another 80 Macy’s stores will be open for the upcoming Memorial Day weekend. It said it expects to have most of its locations open again by late June.
M shares lost six cents, or 1.2%, to $5.01.
