People visit Messi’s store in Manhattan’s shopping district in New York City on August 12, 2020. After a steep decline in tourism due to the Kovid-19 epidemic and a work culture that keeps people at home, New York City is seeing a major exodus of chain stores and other retail businesses. Many of these businesses were struggling before the outbreak of Kovid due to the increasing trend of online shopping and the situation has worsened since then. According to commercial real estate services firm CBRE, average asking rents declined steadily for the eleventh quarter, with 16 major retail areas in Manhattan.
Spencer Plott | Getty Images
Macy’s shares fell on Thursday after the company reported a quarter-par sales decline of more than 20% after the company cut spending on clothing and accessories at US department stores during the coronavirus virus epidemic.
The results, which come a week before the major Black Friday and Cyber Monday shopping events, indicate a rocky holiday season for Macy’s. The retailer is closing unprofitable shops and investing more in its off-price business in a bid to boost sales. But it faces tough competition from the likes of Target and Walmart, as they expand their apparel and beauty offerings, and consumers increasingly shift their spending away from the mall.
Messi said it expects sales of its owned and licensed stores to decline by at least 20 percent during the fall.
Macy’s shares fell nearly 3% in prepaid trading.
Here’s what the retailer expected from analysts based on refinitive data during its fiscal third quarter on October 31:
- Earnings per share: loss of 19 cents, adjusted, versus expected loss of 79 cents
- Revenue: $ 3.99 billion vs. $ 3.86 billion expected
Massey reported a net loss of $ 91 million, or 29 cents per share, compared to net income of $ 2 million, or one penny per share, a year earlier. Excluding the one-time fee, Macy’s lost 19 cents per share, while analysts called for a loss of 79 cents per share.
Net sales fell from $ 5.17 billion to $ 3.99 billion a year earlier. The latest quarterly results were ahead of analysts’ estimate of $ 3.86 billion.
Same-store sales on an ownership plus licensed basis were down 20.2%, while analysts call for a 23.3% decline.
Digital sales grew by 27%, but those gains were not enough to compensate for losses at its stores.
CEO Jeff Gennett said that although customers have moved to buy more casual apparel to wear around the house during the epidemic, Macy’s home furnishings, jewelry and fragrance divisions have made double digits compared to a year ago Sales have increased.
Through the epidemic, many retailers have been forced to cut costs for living. In June, Massey hired 3,900 corporate employees, or about 3% of its total workforce.
With Wednesday’s market close, Macy’s shares declined nearly 47% this year, giving the company a market cap of $ 2.8 billion.
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