Despite the ongoing coronavirus pandemic, Macy’s managed stronger than expected results in the second quarter.
Net loss was $431 million, or $1.39 per diluted share, versus net income of $86 million, or 28 cents per diluted share, in the year-before quarter. Adjusted for one-time events, net loss was $251 million, or 81 cents per diluted share, versus net income of $88 million, or 28 cents per diluted share, in the period a year previous.
Macy’s did better than a Zacks Investment Research analyst consensus estimate, at a $1.78 diluted earnings per share loss, predicted.
Net sales were $3.56 billion versus $5.55 billion in the year-earlier period, Macy’s noted.
“Macy’s, Inc. performance for the quarter was stronger than anticipated across all three brands: Macy’s, Bloomingdale’s and Bluemercury, driven largely by the sales recovery of our stores,” said Jeff Gennette, Macy’s chairman and CEO. “Restarting our stores’ business was our top priority, and we successfully accomplished that while also ensuring that our digital business remained strong. Going into this crisis, we had a well-developed digital business, and we’re seeing that thrive as we attract new and welcome existing customers back to our brands. We’ve put significant focus on enhanced health and safety standards which has allowed our customers and colleagues to feel safe in our stores and facilities. I want to thank our colleagues for the tremendous effort that has been put into recovering our business.”
Although he said second quarter performance was encouraging, Gennette added, “we continue to approach the back half of the year conservatively. Our immediate priority is successfully executing holiday 2020. We are also focused on laying the groundwork for 2021 and beyond. We plan to invest in fashion, digital and omnichannel, work with agility, and galvanize the resources of the company to serve our customers and move the Macy’s, Inc. business forward.”