Macy's Inc. (M) - Get Report shares slumped to an all-time low Wednesday after the icon department store retailer was dumped from the S&P 500 after shedding more than 70% of its value since the start of the year.
S&P Dow Jones Indices said Macy's, which has a market value of around $1.5 billion, will be added to its small-cap index on April 6, while HVAC equipment maker Carrier Global will replace it on the benchmark S&P 500 on April 3.
"Macy's has a market capitalization more representative of the small-cap market space," S&P Dow Jones Indices said in a statement.
Macy's shares were marked 5.4% lower in early trading Wednesday to change hands at $4.64 each, after hitting an all-time low of $4.52, in a move that would extend the stock's one-month decline to around 65%.
Earlier this week, the iconic retailer said it would furlough around 130,000 employees nationwide, and slash pay and benefits for its top executives, as coronavirus closures and 'shelter-at-home' orders keep its stores closed around the country.
"While the digital business remains open, we have lost the majority of our sales due to the store closures," the company said in a statement.
However, just six weeks ago, Macy's had seemingly reached an important point in its ongoing turnaround after it reported a stronger-than-expected fourth quarter profit thanks in part to a "meaningful sales uptick" in the pre-Christmas period.
Looking into the 2020 fiscal year, Macy's has also said net sales would come in between $23.6 billion to $23.9 billion while adjusted earnings were forecast between $2.45 and $2.5 per share.
"We've already taken measures to maintain financial flexibility, including suspending the dividend, drawing down our line of credit, freezing both hiring and spending, stopping capital spend, reducing receipts, cancelling some orders and extending payment terms, and we are evaluating all other financing options," Macy's said Monday.