Microsoft (MSFT) - Get Report announced Friday a permanent closure of its physical retail stores, extending the shutdown that the software titan began in March as the coronavirus pandemic first raged.
The closings will result in a pre-tax charge of about $450 million, or 5 cents per share, to be recorded in the current quarter ending June 30.
Store workers will continue to serve customers from Microsoft corporate facilities and remotely, the company said in a statement.
“Our sales have grown online as our product portfolio has evolved to largely digital offerings, and our talented team has proven success serving customers beyond any physical location,” Microsoft Corporate Vice President David Porter said in the statement.
“We deliberately built teams with unique backgrounds and skills that could serve customers from anywhere,” Porter added.
In the past week, Apple has announced the temporary closing of 32 of its stores in five states that were originally slated to re-open, due to the rebound of the coronavirus in those places. The states are Arizona, Florida, Texas, North Carolina and South Carolina.
“Due to current Covid-19 conditions in some of the communities we serve, we are temporarily closing stores in these areas," Apple said in a statement. "We take this step with an abundance of caution.”
Microsoft shares recently traded at $198.08, down 1.13% in a falling market. The stock has jumped 35% over the past three months, compared to a 24% gain for the S&P 500.