Macy’s stock skyrockets after better-than-expected store re-openings

Macy’s stock skyrockets after better-than-expected store re-openings
Published: June 9, 2020 at 7:30 a.m. ET Macy's Inc. M, +0.62% stock skyrocketed 11% in Tuesday premarket trading after the department store retailer guided for first-quarter losses that are ahead of expectations and said re-opened stores are outperforming. Macy's is expecting to post a net loss of $652 million, or $2.10 per share, after…

Macy’s Inc.
M,
+0.62%

stock skyrocketed 11% in Tuesday premarket trading after the department store retailer guided for first-quarter losses that are ahead of expectations and said re-opened stores are outperforming. Macy’s is expecting to post a net loss of $652 million, or $2.10 per share, after net income of $136 million, or 44 cents per share last year. Its adjusted loss per share is expected to be $2.03. The company is guiding for sales of $3.02 billion, down from $5.50 billion last year. The FactSet consensus is for a loss of $2.18 per share and sales of $3.04 billion. “Our strong digital business sales trend continued throughout May, and it is encouraging to see that as we reopen a store, the digital business in that geography continues to be strong,” said Jeff Gennette, Macy’s chief executive, in a statement. By June 1, the company reopened 450 stores, and those stores are “performing better than anticipated,” Gennette said, with sales moving the company towards a “clean” inventory position. The announcement was made ahead of Gennette’s appearance at a Cowen virtual conference. Macy’s will announce first-quarter results on July 1. Macy’s stock has slumped nearly 44% for the year to date, but is up 15.2% for the last three months. The S&P 500 index
SPX,
-0.98%

is nearly breakeven for 2020 so far.

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