On Thursday, Macy’s Inc., the 91-year old American chain of departmental stores, headquartered in Cincinnati, Ohio, had reported a more than 20 per cent slump in sales over its fiscal third quarter of the year that ended on October 31 on a year-on-year basis, as a pandemic resurgence alongside a curb in consumer spending across the United States had been tightening their grips on an ailing US economy that had entered into a recession on February this year, pointing towards a bleaker-than-anticipated holiday season despite renewed vaccine hopes.
On top of that, the Ohio-based departmental store chain had also added that Macy’s Inc. had been anticipating a continuation of decline in its sales, while the magnitude of its downfall could be more drastic given the wintry chill the US consumers would likely to face off.
Aside from that, Macy’s Inc. Q3 earnings’ result came forth a day after the US head of pandemic supervision and control, Dr. Anthony Fauci had been quoted saying in an interview with BBC News that one or two pandemic vaccines could be authorized for emergency usage in weeks, nonetheless, Fauci had also urged the Americans to avoid large gathering and travelling during the holiday season, casting fresh holocaust over the sales outlook of a number of brick-and-mortar stores including heavy-weights like of Macy’s Inc.
Macy Inc. reports 20% plunge in Q3 profit
Nonetheless, despite a downbeat outlook on sales and traffics over the holiday season, Macy’s Inc. had witnessed an uptick of roughly 4 per cent on Thursday’s pre-market trading, while the US departmental store chain had wrapped up the day 2.11 per cent higher to $9.18 per share as the departmental store chain had unfurled a raft of exclusive product lines as consumers’ trend had shifted substantially amid a new-normal pandemic era.
According to Macy’s Inc.’s quarterly earnings’ report for its fiscal third quarter that ended on October 31, the dept. store chain’s net sales fell to $3.99 billion compared to a reading of $5.17 billion recorded at the same time a year earlier, while the company had reported a net loss of 19 cents per share, but had wildly beaten an analysts’ estimate of a loss of 79 cents per share.
Meanwhile, adding that Macy’s Inc.’s loungewear, fine jewellery, fragrances and home décor had been performing well over the current-quarter with a significant upsurge in online sales, the company Chief Executive Gennette said in post-earnings call with the reporters, “Looking to Holiday 2020, we know this year is different.
We have the right gifting assortment with newness from value to luxury, and our expanded fulfilment options allow customers to shop safely and conveniently, in store or online. We’ve gotten our inventories down in those dressier categories, but we will ramp that up very quickly with all of our partners and our private brands as the vaccination becomes more apparent. ”