Macy's reported Q1 net loss of 3.58 billion dollars

Macy’s, Inc. for the first quarter of 2020 reported net sales of 3.017 billion dollars compared to 5.504 billion dollars for the same quarter last year. The company said in a statement that net loss for the quarter was 3.58 billion dollars compared to net income of 136 million dollars last year, while diluted loss per share was 11.53 dollars and adjusted diluted loss per share of 2.03 dollars compared to 44 cents earnings per diluted and adjusted diluted share in the previous year.

“The first quarter of 2020 was challenging for the country, the industry and Macy’s, Inc. While our stores are re-opened, we expect that the Covid-19 pandemic will continue to impact the country for the remainder of the year. We do not anticipate another full shutdown, but we are staying flexible and are prepared to address increases in cases on a regional level,” said Jeff Gennette, Chairman and CEO of Macy’s, Inc.

As a result of the Covid-19 pandemic, the company’s long-term projections and market capitalization changed, requiring interim impairment assessments for its goodwill and long-lived assets. As a result of these assessments, the company further said that it recognized pre-tax, non-cash goodwill and long-lived asset impairment charges of 3.1 billion dollars and 80 million dollars, respectively, during the 13 weeks ended May 2, 2020.

Nearly all of the company’s stores have now reopened. The company added that stores continued to perform ahead of expectations through May and June, and the company’s digital business sales remained strong across geographies and Macy’s expects a gradual sales recovery.

Picture:Macy's media centre