NEW YORK – Macy’s Inc On Wednesday reported a staggering $3.58 billion loss for the coronavirus hit quarter as store shutdowns resulted in the department store chain recording a $3 billion impairment charge.
The global health crisis has forced brick-and-mortar retailers to tap credit lines, lay off employees and suspends dividends and buybacks in a bid to stay afloat.
Macy’s, which also owns Bloomingdale’s said net sales for the first quarter ended May 2, nearly halved to $3.02 billion.
‘While our stores are re-opened, we expect that the COVID-19 pandemic will continue to impact the country for the remainder of the year’, Chief Executive Officer Jeff Gennette said in a statement.
Macy’s also recorded an asset impairment charge of $80 million.
On a per share basis, it reported a net loss of $11.53 in the first quarter ended May 2 compared with a profit of 44 cents a year earlier.
Macy’s result comes as some of its peers, including J Crew, J.C. Penney and Neiman Marcus Group, filed for bankruptcy after failing to cope with market uncertainties and mounting debt.