Macy’s reported revenue of $3.56 billion for the second quarter, down 36% year-over-year.
Comp sales dropped 34.7% year-over-year. The retailer posted a net loss of $251 million versus a profit of $88 million in the second quarter of 2019.
Earnings per share dropped to negative 81 cents against Street expectations for a $1.77 loss. Digital sales increased 53% year-over-year.
Macy’s showed strength in digital sales, which helped offset the loss of sales at stores due to coronavirus closures.
“Going into this crisis, we had a well-developed digital business and we’re seeing that thrive as we attract new and welcome existing customers back to our brands,” Chairman and CEO Jeff Gennette said in a statement.
Digital sales made up 54% of the total comparable sales. Store sales dropped 61% year-over- year.
Without the strength of digital, this would have been a much more difficult quarter for the company.
Macy’s main focus is to execute the holiday 2020 season successfully. An emphasis is also being put on laying the groundwork for 2021 and the future.
The company increased its liquidity in the second quarter and now has $1.4 billion in cash and $3 billion in untapped new asset-based credit facilities.
Price Action: Shares of Macy’s were up 1.64% at $7.12 at the time of publication Wednesday.
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