New York Dept. store chain Macy’s post $431 million in losses as sales dip 36%

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New York Dept. store chain Macy’s post $431 million in losses as sales dip 36%

Macy’s Inc., the New York-headquartered 172-year-old American Dept. store chain, had reported a plunge of 35.8 per cent in net sales over its fiscal second quarter that ended on Aug. 1, but had beaten an analysts’ estimate as Americans staying at home due to the pandemic outbreak had purchased more apparels through the United States’ largest store chain’s apps and websites, eventually lifting up shares’ prices of the fashion and clothing retailer by 0.57 per cent to $7.05 a share.

Nonetheless, Macy’s Inc. shares’ prices had pummelled as much as 57.32 per cent this year. In tandem, despite a better-than-anticipated quarterly sale over its second fiscal quarter ended on Aug 1, the New York-based departmental store chain had reported a net loss of $431 million or $1.39 per share compared to the same time a year earlier when the company had posted a profit of $86 million or 28 cents a share.

Macy’s beat estimates as online sales surge 53%

In point of fact, latest quarterly earnings’ report from Macy’s Inc. came forth at a time while tens of millions of Americans had been forced to tap into their savings amid an uncertain outlook over a $2.2 trillion second round of pandemic stimulus bill, however, the US President Donald Trump had agreed to sign off up to $1.3 trillion, $900 billion lower than the Congressional Democrats alongside House Speaker Nancy Pelosi had demanded.

Surprisingly, irrespective of the uncertainties spiralling over the US economy ahead of a November 3 Presidential election which has every potentiality to alter the fiscal landscape of the world’s No. 1 economy, Macy’s Inc.

shoppers had spent more on comfy athletic wears alongside home improvement materials and household decors in order to redecorate their homes, while the NY-based company had also added at its quarterly earnings’ report that an upscaled sales of its luxury goods such as high-priced perfumes, diamonds and mattresses had aided the fashion retailer to shore up its online sales by as much as 53 per cent.

Top Macy’s Inc. executives including interim CFO (Chief Financial Officer) Felicia Williams alongside Chief Executive Jeffrey Gennette had said to the reporters later on the day that the company had lured away over 4 million new online customers over its second fiscal quarter amid a highly mobbed online retailing industry.