(Reuters) – Macy’s Inc reported a staggering $3.58 billion loss on Wednesday for its coronavirus-hit first quarter as store shutdowns resulted in the department store chain recording a $3 billion impairment charge.
The global health crisis has forced brick-and-mortar retailers to tap credit lines, lay off employees and suspend dividends and buybacks in a bid to stay afloat.
“While our stores are reopened, we expect that the COVID-19 pandemic will continue to impact the country for the remainder of the year,” Chief Executive Officer Jeff Gennette said in a statement, adding that the retailer did not expect another total shutdown of stores.
Macy’s, which also owns Bloomingdale’s, said net sales for the first quarter through May 2 nearly halved to $3.02 billion.
The retailer’s results come as some of its peers, including J Crew, J.C. Penney and Neiman Marcus Group, have filed for bankruptcy after failing to cope with market uncertainties and mounting debt.
Macy’s, which on June 25 said it would lay off about 3,900 employees in corporate and management positions in a bid to save cash, did not provide an updated outlook.
On a per-share basis, it reported a net loss of $11.53 in the first quarter ended May 2 compared with a profit of 44 cents a year earlier.
Excluding one-time items, the company lost $2.03 per share, meeting expectations, according to IBES data from Refinitiv.
The company last month raised $4.5 billion, including a $3.15 billion asset-based loan to keep its business running as stores reopened.
As of May 2, Macy’s had $1.52 billion in cash and cash equivalents, and $18.58 billion in total liabilities and shareholders’ equity.
Shares were down about 3% in premarket trading.
Reporting by Nivedita Balu in Bengaluru and Melissa Fares in New York; Editing by Arun Koyyur