Macy’s, Inc. (NYSE: M) announced earnings. For the most part, they were treated with pessimism. The holidays, at least one prominent analyst said, will not rescue the storied retailer. And, the COVID-19 crippled economy of the fourth quarter could make its situation even more difficult.
Jefferies analyst Randal Konik wrote, just after the figures came out: “The outlook for holiday is depressed, and we don’t see how this company or the entire department store industry can ever recover from the share losses to discount/off-price and other e-commerce players. Bottom line … Macy’s is in a tough spot.”
There was not a single piece of good news in the earnings report. Revenue fell 21% to $4 billion. The company lost $91 million compared with a $2 million profit in the same period a year ago.
Macy’s had a complex presentation of its current situation in its earnings release. There was nothing to spur optimism.
Macy’s shares are down 47% this year. They have recovered some over the last month. However, it is not enough to show anything other than that the future is grim.