As the Corona virus began to reopen its stores during the pandemic, the latest quarter received a bigger boost than expected online.
The department store operator’s digital sales are up 53 percent from a year ago as more shoppers visit its website to buy workout clothing and home appliances. This allowed analysts to report lower-than-expected losses and gross returns.
However, ahead of every major holiday, there is a lot of uncertainty in the industry, said Chief Executive Jeff Janet, adding that Masi is conservatively planning for the rest of 2020 and the company has not made a financial forecast.
Masi shares rose 5% in pre-market trading.
Here’s how retailers performed in the second quarter ended August 1, compared to analysts’ expectations based on refinitive data:
- Loss per share: 81 cents versus $ 1.77 loss, expected
- Revenue: $ 3.56 billion vs. 48 3.48 billion, expected
The stock lost $ 431 million a year, or $ 1.39 a share, a year ago. $ 86 million or 28 cents per share. Excluding one-time charges, it lost 81 cents per share, which is better than analysts’ forecast of a loss of 1. 1.77.
Macy’s net profit fell 35.8 percent to $ 3.56 billion. A year ago, it was $ 5.55 billion. But it was $ 3.48 billion.
Ownership and licensed sales, which have been open for at least 12 months in online and Macy stores, fell 35.1%. Analysts had demanded a 28.2% drop in refining figures.
Massis represents 54% of its digital sales comparable total sales, with stores closed during this period.
The company said its second quarter ended with strong cash flow. The balance sheet contained about $ 1.4 billion.
Its inventories are down 29% from a year earlier.
Department stores in the United States More and more retailers are suffering from the corona virus crisis. Many, including Neyman Marcus and Stage Stores, have applied for bankruptcy by 2020. Moreover, these companies do not seem to deserve to be saved. Lord & Taylor announced last week that after two centuries of business, the remaining 38 stores are being liquidated. And Negotiations between bidders to free JC Penny from bankruptcy stalled, Leaving companies’ lenders to make any last-minute deals for survival.
Masi stock fell more than 58 percent this year as the market closed on Tuesday. It has a market capitalization of $ 2.2 billion.