|
Getting your Trinity Audio player ready...
|
Macy’s 2020 earnings reflect higher online sales and lower in-store revenue. The in-store sales decreased while online sales increased during this crisis. The department store operator’s digital sales increased 53 percent from a year ago, in its 2nd quarter.
Overall sales for at least 12 months are down 35.1 percent. CEO Jeff Gennette stated that they are planning cautiously for the remainder of the year. He believes the store sales will remain down in the low 20 percent range during the fall seasons. The reported net sales are $3.56 billion, down nearly 36 percent from $5.55 billion.
Gennette is planning to focus on apparel and curbside pickup to improve sales and to move the business forward. The retailor shut down stores for part of the quarter, which caused in-store sales to decrease. Macy’s struggles to reverse the damage in the 2nd Quarter.
During the pandemic, Macy’s in-store sales dropped and online revenue increased. The digital sales team contacted new and welcomed existing customers back to the brand
Macy’s expects its profit margins to peak in the 3rd quarter, due to an increase in shipping expenses and other costs during the holiday season, until the end of the year.
The increase in online sales for the quarter is helping stores recover faster than the company expected. Macy’s in-store revenue fell 61 percent but by the start of the third quarter were increasing. The online sales increase gave the company hope. The company CEO Jeff is planing for a drawn-out holiday season this year, with the increase of sales prior to Thanksgiving day.
Written by Jessica Letcher
Sources:
CNBC: Macy’s swings to a loss, but shares rise as stronger-than-expected online growth boosts sales: Lauren Thomas
CNBC: Macy’s prepares for a holiday season like no other: Lauren Thomas
RIS: Macy’s Digital Sales Grow 53% in Q2 to Offset COVID-19-Inflicted Damage: Lisa Johnston
Featured and Top Image Courtesy of Mike Mozart’s Flickr Page – Creative Commons License