Macy�s got more people to shop on its website and app, but it wasn�t enough to make up for plummeting sales inside its department stores.
Online sales were up 53%, and the company said it attracted 4 million new online customers. But sales sunk 61% inside its stores, which reopened in June after being temporarily closed due to the pandemic.
Macy�s is the country�s largest department store operator, offering a glimpse into what America�s are buying.
With people spending more time at home, shoppers bought fewer dresses, luggage and men�s suits. But they spent more on comfy athletic wear, as well as decor to spruce up their homes. Macy�s said luxury goods did surprisingly well, too, such as high-priced mattresses, perfumes and diamond jewelry. The New York company also owns Bloomingdale�s and the Bluemercury makeup and cosmetic chain.
Many of its department stores are at malls, which have struggled to attract shoppers even before COVID-19. Some of its mall-based rivals have gone bankrupt, including J.C. Penney, Neiman Marcus and Stage Stores.
Over the next two years, Macy�s said it plans to open smaller Macy�s and Bloomingdale�s stores that are not attached to a mall.
For the holiday season, it will spread out discounts over a longer period to avoid overcrowding at its stores and continue to push shoppers to buy online and pick up at the curb.
The virus is also forcing Macy�s to rethink how it will hold its annual holiday events, like Christmas tree lightings, holiday window decorations and its annual Thanksgiving Day parade. But the company didn�t provide any details on changes it plans to make.
Overall, the company reported a second-quarter loss of $431 million, or $1.39 per share, after posting a profit in the same quarter a year ago.
Adjusted losses came to 81 cents per share, which was better than the loss of $1.78 per share Wall Street analysts expected, according to Zacks Investment Research.
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Revenue fell 36% to $3.56 billion in the period, also topping analyst expectations.
Shares of Macy�s Inc., which are down nearly 60% so far this year, rose less than 1.5% to $7.12 in midday trading Wednesday.
(AP)