Macy’s, Inc. reported better-than-expected Q2 sales, with store losses supported by digital sales growth.
The No. 19 retailer, which includes the Macy’s, Bloomingdales and Bluemercury brands, reported net sales of $3.56 billion, down nearly 36% from $5.55 billion in the prior-year period.
Digital sales, however, grew 53% for the quarter, and stores are recovering faster than the company had expected.
“Going into this crisis, we had a well-developed digital business, and we’re seeing that thrive as we attract new and welcome existing customers back to our brands,” said Jeff Gennette, chairman and CEO of Macy’s, Inc., in a statement.
The apparel retailer’s immediate priority is the holiday season — in which it intends to heavily leverage curbside pickup — and laying the groundwork for 2021. “We plan to invest in fashion, digital and omnichannel, work with agility, and galvanize the resources of the company to serve our customers and move the Macy’s, Inc. business forward,” Gennette added.
Like many retailers, Macy’s has struggled as it tries to reverse the damage wrought by COVID-19-prompted store closures and new consumer behavior. It reduced its corporate headcount at the beginning of the summer as part of a restructuring.
Moving forward, the company still has new store openings on its roadmap as it optimizes its store footprint. In addition to testing smaller storefronts that aren’t attached to shopping malls, the company also plans to open an off-mall Bloomingdale’s.