Macy's Inc (NYSE: M) shares fell more than 5 percent in the pre-market trading Thursday after the Cincinnati, Ohio-based retailer announced its financial results for the third quarter.
The company reported a loss of $91 million, or 29 cents per share for the three-month period ended October 31, as compared to earnings of $2 million, or 1 cent per share in the same period last year. On an adjusted basis, loss was 19 cents per share, narrower than a loss of 83 cents per share forecasted by analysts.
Sales fell to $3.99 billion in the quarter, as compared to $5.17 billion in the year-ago quarter. Analysts surveyed by FactSet had a forecast of $3.91 billion.
Digital sales in the quarter rose 27 percent on a year-over-year basis, while inventory decreased 29 percent in the quarter, as compared to the same period last year.
Gross margin improved significantly to reach 35.6 percent in the quarter, as compared to the prior quarter. The gain was mainly driven by efficient inventory management.
Macy's did not offer any financial outlook due to uncertainty amid the Covid-19 pandemic.
Speaking on the results, the company’s CEO Jeff Gennette said in a statement “we continue to watch the resurgence of COVID-19 and its potential impact on our business. Our teams are executing well and have shown the flexibility and agility to adjust plans and provide a great omnichannel experience to our customers.”
Macy's stock fell sharply after the Covid-19 outbreak, touching a low of $4.5 in April. The stock has been struggling to recover its lost value since then. Overall, Macy's share price has plummeted nearly 47 percent on year-to-date basis. The company has a market value of $2.789 billion.
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