The American fashion label Macy’s second quarter report saw its net sales go down by as much as 36 per cent to clock US $ 3.6 billion from US $ 5.5 billion during the same period last year.
The second quarter also saw the retailer’s store sales slump by a disturbing 61 per cent.
However, if there was anything for Macy’s to be happy about in the second quarter, then it was its much expected e-commerce sales that rose by an impressive 53 per cent.
While its digital business has been doing well over the last few months, Macy’s has been putting efforts on adjusting its supply chain so as to bring down the added digital expenses.
Meanwhile, the comparable sales too declined by 34.7 per cent on an owned basis. Here it’s worth noting that e-commerce sales constituted 54 per cent of those sales – expectedly so, as most of its stores, during the quarter, were shut.
On an owned plus licensed basis, the comparable sales were down by 35.1 per cent during the quarter ended 1 August.
Notably, the retailer incurred net loss of US $ 431 million compared with a profit of US $ 86 million last year. However, it narrowed its losses from the last quarter.
Macy’s, reportedly, has US $ 1.4 billion in cash at the end of Q2 and its inventories are also down by 29 per cent from what it was last year.
The retailer, known for its apparels, footwear and accessories amongst others, said that it hopes to save US $ 365 million through layoffs in fiscal 2020.
Like many other fashion retailers, Macy’s too believes the upcoming holiday season will benefit the retailer.