As Macy’s revealed their Q1 2020 financial report, the company is seen to be incurring extreme losses. While revenue in February looked stable, store closures and lockdowns crashed the March and April revenues.
Total revenue for Q1 stood at US $ 3 billion, which is far from US $ 5.5 billion in Q1 2019. The operating losses are said to land anywhere between US $ 905 million and US 1.1 billion, which are astronomical compared to US $ 203 million for Q1 2019.
Debt has also been rising up for the department store chain as the report stated US $ 5.6 billion in the Group’s debt.
Macy’s stated that they had closed all stores since 18 March 2020, which impacted significantly on the financial books.
While stores have gradually started opening, the retailer is now backing hard on digital sales and the results have shown positive signs. Bloomingdales is also owned by the Group and has shown signs of getting back on track as stores have been opening across the United States since 4 May 2020.
“We began reopening our stores on 4 May and, as of this week, have approximately 190 Macy’s and Bloomingdale’s stores open in their full formats. We expect another 80 Macy’s stores to open for Memorial Day weekend,” said Jeff Gennette, Chairman and CEO of Macy’s Inc.
He also went on to say that filing for bankruptcy is far from an option as the Group predicts a gradual rise in sales as most of its stores are expected to reopen by late June.