Macy’s (NYSE:M) shares fell Thursday after the company reported a quarterly same-store sales decline of more than 20%, as consumers cut back their spending on clothes and accessories at America’s department stores during the coronavirus pandemic.
The results, which come a week ahead of key Black Friday and Cyber Monday shopping events, signal a rocky holiday season for Macy’s. The retailer has been closing unprofitable stores and investing more in its off-price business in a bid to boost sales.
But it faces tougher competition from the likes of Target (NYSE:TGT) and Walmart (NYSE:WMT), as they expand their apparel and beauty offerings, and consumers increasingly shift their spending away from the mall.
Macy’s said it expects its same-store sales of owned and licensed stores to decline by a low- to mid-20s percentage during the fall.
Macy’s reported a net loss of $91 million, or 29 cents per share, compared with net income of $2 million, or a penny per share, a year earlier. Excluding one-time charges, Macy’s lost 19 cents per share, while analysts were calling for a loss of 79 cents per share.
Net sales fell to $3.99 billion from $5.17 billion a year earlier. The latest quarterly results were ahead of analysts’ estimates of $3.86 billion.
Same-store sales on an owned plus licensed basis were down 20.2%, while analysts had been calling for a 23.3% decline.
Digital sales grew 27%, but those gains weren’t enough to offset losses at its stores.
M shares took on 15 cents, or 1.6%, to open at $9.14.
