Macy's records nearly $4 billion in losses as COVID-19 hits business

[July 01, 2020]  (Reuters) - 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.

A sign that marks the Macy's store is seen at the Herald Square location in New York, U.S., May 9, 2016. REUTERS/Shannon Stapleton/File Photo

The global health crisis has forced brick-and-mortar retailers to tap credit lines, lay off employees and suspend 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 results 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.

(Reporting by Nivedita Balu in Bengaluru; Editing by Arun Koyyur)

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