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Macy’s jumped over 6% at the pre-market. The surge is attributed to the stronger than anticipated 2020 Q2 results across all its three brands: Macy’s, Bloomingdale’s and Bluemercury.
After releasing its 2020 second-quarter results, Macy’s Inc (NYSE: M) stock shot up more than 6%, whereby at the time of writing they were trading at around $7.44.
Shares of the American department store chain have seen a very rough year, having lost over 58% year to date through Tuesday. However, things seem to have changed in the past one month whereby they have gained around 12%.
With the company having reported better than anticipated results, Macy’s stock rise might continue and perhaps sustain before the next quarterly results.
Macy’s Leadership Board
“Macy’s, Inc. performance for the quarter was stronger than anticipated across all three brands: Macy’s, Bloomingdale’s and Bluemercury, driven largely by the sales recovery of our stores. Restarting our stores’ business was our top priority, and we successfully accomplished that while also ensuring that our digital business remained strong. 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,” said Jeff Gennette, chairman and chief executive officer of Macy’s, Inc.
“We’ve put significant focus on enhanced health and safety standards which has allowed our customers and colleagues to feel safe in our stores and facilities. I want to thank our colleagues for the tremendous effort that has been put into recovering our business.” He added.
The company is striving on improving its performance in the coming quarters, despite the negative impact of the ongoing coronavirus pandemic. With a line of new investments planned in the coming quarters, Macy’s stock will largely benefit from them.
“We are encouraged by our second-quarter performance; however, we continue to approach the back half of the year conservatively. Our immediate priority is successfully executing Holiday 2020. We are also focused on laying the groundwork for 2021 and beyond. We plan to invest in fashion, digital and omnichannel, work with agility, and galvanize the resources of the company to serve our customers and move the Macy’s, Inc. business forward,” Gennette continued.
Details of Q2 Results that Macy’s Stock
According to the report, the company’s net loss for the quarter to Aug. 1 jumped by $431 million, or $1.39 a share, from net income of $86 million, or 28 cents a share, in the year-ago period. Excluding non-recurring items, the adjusted per-share loss was 81 cents, compared with the FactSet loss consensus of $1.77. Sales dropped 35.8% to $3.56 billion, above the FactSet consensus of $3.50 billion, while same-store sales dropped 34.7% compared with expectations of an 18.6% decline. Digital sales increased by 53% and penetrated 54% of same-store sales.