What Happened: Retail giant Macy’s Inc M posted preliminary first-quarter results Tuesday, headlined by a loss of $2.03 per share, better than the $2.33-per-share loss the Street was expecting.
The preliminary sales figure of $3.02 billion beat a $3.01-billion estimate.
The company has also announced $4.5 billion in emergency funding.
Macy’s showed a 45% year-over-year drop in in sales and a 17% spike in debit as the company worked to survive the pandemic.
The balance sheet also shows how Macy’s worked to cut costs. Sales, general and administrative expenses are down almost $500 million from the $2.1 billion spent in the first quarter of 2019 .
Why It Matters: Investors have been anticipating Macy’s recovery: the stock is up 70% in less than a month but is still down 40% year-to-date.
The retail industry has seen a wave of bankruptcy filings, including J C Penney Company Inc JCPNQ.
What’s Next For Macy's: Macy's Chairman and CEO Jeff Gennette focused on the reopening of 450 Macy's stores and a surge in e-commerce sales in a Tuesday press release.
Stores are exceeding expectations and Macy’s is offering curbside pick-up, the CEO said.
“We are seeing strong sell-through of seasonal merchandise and anticipate that we will exit the second quarter in a clean inventory position.”
The stock ended Tuesday's sesison down 7.31% at $8.87.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
