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Business

Macy's reports drop in Q3 sales

By Prachi Singh

Nov. 19, 2020

Macy’s, Inc. reported third quarter net sales of 3,990 million dollars compared to 5,173 million dollars in the third quarter of 2019. Comparable sales were down 21 percent on an owned basis and down 20.2 percent on an owned plus licensed basis, due to continued stores recovery and continued growth of digital business. Macy’s said diluted loss per share was 29 cents and adjusted diluted loss per share was 19 cents compared to diluted earnings of 1 cent and adjusted earnings of 7 cents in the same quarter of 2019.

“Macy’s third quarter results reflect solid performance across all three brands – Macy’s, Bloomingdale’s and Bluemercury,” said Jeff Gennette, Chairman and Chief Executive Officer of Macy’s, Inc. in a statement, adding, “Looking to Holiday 2020, we know this year is different. 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.”

The company’s digital sales grew 27 percent over third quarter 2019 and digital sales penetrated at 38 percent of total owned comparable sales. The company added that gross margin reached 35.6 percent compared to 23.6 percent in the second quarter of 2020, an improvement of approximately 12 percentage points driven by disciplined inventory management, better sell through of both full-price and clearance merchandise and lower clearance markdowns.

Picture:Macy's Assets