Macy’s reported a net loss of nearly $3.6 billion during Q1 2020 as its revenue, hit by extended store closures, dropped to $3 billion from $5.5 billion for the same period a year ago. However, nearly all locations have reopened since the quarter ended on May 2, and results at these locations have exceeded expectations. Macy’s expects a gradual sales recovery in the coming quarters.
“The first quarter of 2020 was challenging for the country, the industry and Macy’s Inc.,” said Jeff Gennette, Chairman and CEO of Macy’s in a statement. “While our stores are reopened, we expect that the COVID-19 pandemic will continue to impact the country for the remainder of the year. We do not anticipate another full shutdown, but we are staying flexible and are prepared to address increases in cases on a regional level. We are meeting our customers how and where they are shopping and have enhanced our fulfillment options and health precautions to ensure a safe and welcoming shopping experience.”
However, Macy’s future appeared uncertain even before the COVID-19 pandemic. The retailer posted a 0.6% same-store sales decline during the 2019 holiday season, resulting in 29 store closures, and the company will close at least 125 stores and lay off 2,000 corporate employees over the next three years. Additionally, Macy’s lost President Hal Lawton to Tractor Supply in January, while EVP and CFO Paula Price departed at the end of May, shaking up the retailer’s leadership during a delicate time.