Here is why Macy's shares fell in the pre-market today
Sales fell to $3.99 billion in the quarter, as compared to $5.17 billion in the year-ago quarter.
Staff or Guest writer for The Dog of Wall Street.
2020-11-19 09:27

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. 

Disclaimer: I have no positions in any of the stocks mentioned. I wrote this article myself, and it expresses my own opinions. I have no business relationship with any company whose stock is mentioned in this article. All information should be independently verified and should not be relied upon for purposes of transacting securities or other investments. See terms for more info.

Published On
2020-11-19 09:27

About the Author
Staff or Guest writer for The Dog of Wall Street.


Macy's earnings preview
The company has released its Q1 2020 earnings report on 1 July 2020. The numbers were less than impressive; however, it hardly came as a surprise knowing that the company had to shut its brick and mortar operations in March.
By Valdas S. | 7 months ago

2 First Mover Stocks Ready to Rebound
There may be no greater advantage than being a first mover, so here are a couple that are still way down off of their recent 52-week and all-time highs.
By Mike Sakuraba | 11 hours ago

3 Stocks for Early April
With the NASDAQ and growth sectors rebounding nicely last week, let’s take a look at three stocks with some major catalysts heading into April, the first month of the second quarter.
By Mike Sakuraba | 6 days ago

2 Fintech Giants Get into Cryptos (Plus one to watch)
Let’s take a look at the two companies and one more that could be a sneaky bet moving forward.
By Mike Sakuraba | 1 week ago

Elon Musk Tweets Tesla Could Surpass Apple Amid Stock Price Slip
Despite the current declining performance on the market, Musk’s tweets might suggest something in the works that could mean a leap in Tesla’s stock price in the near future.
By Staff | 2 weeks ago

2 Stocks to play the NFT Market
Here’s two stocks that have a great opportunity to be the first movers amongst publicly traded companies.
By Mike Sakuraba | 2 weeks ago