Macy's Earnings: Not Good, but Much Better Than Expected
There was no question that Macy's (NYSE: M) second-quarter earnings report was going to be ugly. The department store operator entered the period with all of its stores closed and a glut of unsold spring inventory. And while nearly all of its stores reopened by the end of June, mall traffic has remained weak, as many consumers shy away from brick-and-mortar shopping. Even worse, dressy clothing is typically a source of strength for Macy's, but few people are looking to buy such items right now.
As expected, Macy's reported another steep sales decline and a quarterly loss for its second quarter ended Aug. 1. However, the department store giant performed much better than management and many analysts initially feared. That puts it in a good position to execute its turnaround plan over the next several years.
Macy's sales plunged 35.8% year over year to $3.56 billion last quarter on a 35.1% decline in comparable sales. Still, this beat the average analyst estimate of $3.47 billion. In-store sales plummeted 61%, but the weakness in store traffic was partially offset by a 53% sales gain for Macy's e-commerce business.
Source Fool.com
