Yahoo Finance Macy’s same-store sales fall more than 20% in Q3
On Thursday, Macy's reported a smaller-than-expected loss amid challenges from COVID-19 going into the holiday season. The company said it lost $0.19 a share on revenue that fell 23% to $3.99 billion, same-store sales slid 21% in the quarter.
Video Transcript
JULIE HYMAN: Macy's out this morning, and I know that Brian Sozzi has been keeping a close watch on it to see just how bad it was going to be. Indeed, it was pretty bad, but not quite as bad as some analysts had expected, Brian Sozzi.
BRIAN SOZZI: Hand over my eyes.
JULIE HYMAN: [INAUDIBLE]
BRIAN SOZZI: Yeah, Julie, hand over my eyes and fingers on my nose because this quarter stunk. And you see the pre-market move in Macy's. Stock is down about 5% for two good reasons. In a slide presentation on the site, the CFO noted that gross profit margins peaked in the third quarter. What does that mean in layman's terms? They might decline in the competitive fourth quarter, which is the holiday season.
And number two, I know Macy's likes to think it's Amazon, it's a digital first business. They also still own 700 stores. In the third quarter, sales in those stores fell 36%. That is terrible.
MYLES UDLAND: You know, just the thing with Macy's, you look at the quarter, and we've seen a lot of retailers-- obviously, they have their struggles. We've seen a lot of retailers benefit from this. We've heard from Charlie O'Shea earlier this week was talking about the kind of K-shaped recovery you see, where, you know, the rich get richer. And a company like a JC Penney, like a Macy's is going to continue to struggle.
But there are ways to execute through a crisis. And basically, none of them, Sozzi, seem to be happening at Macy's. I mean, sales-- you know, the revenue line, the top line for the company is basically 1/3 of what it was for the same quarter last year. I mean, that's just not acceptable.
BRIAN SOZZI: Here's Macy's strategy, Myles. They have a goal also in that presentation to cut $2.1 billion in costs by 2022. Basically, they will fire a lot of people and hopefully will turn operating profits in 2021 if sales come back a little bit. That's all there is to it.
