At the time of writing, Macy’s (M) stock is trading at $8.90 which means that it is 1.06% down.
The stock of popular American Department store Macy’s Inc (NYSE: M) plummeted in the pre-market following the release of the company’s third-quarter 2020 results which shows a 20% decline in same-store sales. Macy’s which has been in existence since 1929 had a slightly rough Q2 thanks to the coronavirus pandemic that shifted consumer’s focus away from clothing and accessories amid the lockdowns.
Despite the decline in same-store sales in the Q3 under review, The Ohio-based firm recorded a solid performance that beats analysts’ expectations.
“Macy’s, Inc. third quarter results reflect solid performance across all three brands – Macy’s, Bloomingdale’s, and Bluemercury. Our results were driven by disciplined cost management, strong execution by our colleagues and an early start to the holiday shopping season,” said Jeff Gennette, chairman and chief executive officer of Macy’s, Inc. “Customers shopped our brands across all channels in the third quarter and responded well to our expanded fulfillment offerings, such as curbside, store pickup, and same-day delivery.”
Per the financials, Macy’s reported a $3.99 billion as against the $3.86 billion expected from analysts. The company’s adjusted Earnings Per Share (EPS) came in at a loss of 19 cents, adjusted in comparison to an expected loss of 79 cents per share. The company reported a positive EBITDA for the year, a quarter sooner than it projected and its digital sales grew by 27% from the 2019 figures. The digital market sales account for 38% of the total owned comparable sales.
Macy’s previously withdrew its full 2020 earnings guidance due to the uncertainties brought by the coronavirus pandemic. Nonetheless, Gennette said that the company will continue to watch the resurgence of COVID-19 and its potential impact on Macy’s business. He added that its staff “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 Shrinks: Deviation from the Norm
The dip in Macy’s stock comes as a deviation from the norm seen thus far amongst American retail or consumer-focused companies that have posted their previous quarter earnings.
At the time of writing, M stock is trading at $8.90 which means that it is 1.06% down.
Upon the release of its Q3 earnings back in September as reported by Coinspeaker, the shares of Nike Inc (NYSE: NKE) surged by 13%, a growth that cascaded into the after-hours trading, the shares as reported at the time went on another bullish run when the company released its earnings guidance. The NKE shares rose by 8.7% with the news.
While the two retailers show different responses in line with a strong Q3 performance, both as well as other consumer-centric outfits are bound to maintain healthy performance as a result of the holiday spendings and positive news of a coronavirus vaccine been approved.