Shares of Macy’s Inc.
shot up 8.4% in premarket trading Wednesday, after the department store chain reported a fiscal second-quarter loss that was much narrower than expected as net sales topped forecasts. The company swung to a net loss for the quarter to Aug. 1 of $431 million, or $1.39 a share, from net income of $86 million, or 28 cents a share, in the year-ago period. Excluding non-recurring items, the adjusted per-share loss was 81 cents, compared with the FactSet loss consensus of $1.77. Sales dropped 35.8% to $3.56 billion, above the FactSet consensus of $3.50 billion, while same-store sales dropped 34.7% compared with expectations of an 18.6% decline. Digital sales increased 53%, and penetrated 54% of same-store sales. “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 Chief Executive Jeff Gennette. Inventory declined 29%. Macy’s did not provide financial guidance given the uncertainties related to the COVID-19 pandemic. Macy’s stock has tumbled 58.8% year to date through Tuesday, while the SPDR S&P Retail ETF
has advanced 15.1% and the S&P 500
has gained 9.2%.