Macy's Posts Narrower Q3 Loss as Digital Sales Surge; Eyes Holiday COVID Impact

Macy's CEO Jeff Gennette said the retailer will "continue to watch the resurgence of COVID-19 and its potential impact on our business" after posting a narrower-than-expected third quarter loss.
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Macy's Inc.  (M) - Get Report posted a narrower-than-expected third-quarter loss Thursday and noted that it continues to monitor the impact of the coronavirus pandemic on its business heading into the final months of the year.

Macy's said its adjusted loss for the three months ending in October was pegged at 19 cents per share, down from a profit of 7 cents per share over the same period last year and well inside the Street consensus forecast of -79 cents per share. Group revenues, Macy's said, fell 22% to $3.99 billion, a figure that also topped analysts' estimates of a $3.86 billion tally.

Same-store sales were down 21% from last year, Macy's said, while digital revenues jumped 27% thanks to the retailer's focus and investment in online channels. 

“Macy’s, Inc. third-quarter results reflect solid performance across all three brands – Macy’s, Bloomingdale’s and Bluemercury. Our results were driven by disciplined cost management, strong execution by our colleagues and an early start to the holiday shopping season,” said CEO Jeff Gennette. “Customers shopped our brands across all channels in the third quarter and responded well to our expanded fulfillment offerings, such as curbside, store pickup and same-day delivery." 

"Our digital business delivered strong growth and sales in our stores continued to recover. Customers have shifted their spending to casual apparel and categories they can enjoy as they stay at home." 

“Looking to Holiday 2020, we know this year is different. We are committed to bringing the joy of the season to America as we do every year," he added. "From next week’s Thanksgiving Day Parade to reimagined family gatherings, we will help our customers and their families celebrate in style. We have the right gifting assortment with newness from value to luxury, and our expanded fulfillment options allow customers to shop safely and conveniently, in-store or online.” 

Macy's shares were marked 5.7% lower in pre-market trading immediately following the earnings release to indicate an opening bell price of $8.48 each.