The American department store chain Macy’s Inc (M.N) warned on Thursday that it could lose more than $1.11 billion in the first fiscal quarter and sees sales fall at least 45% after the coronavirus outbreak paralyzed its retail operations worldwide.
Macy’s has acknowledged that it might emerge a smaller company from the pandemic as it had to furlough the majority of its employees and close all of its 775 stores last March 18. The company said on Thursday that online sales did start growing in April but they “only partially offset” the loss of sales from its stores.
“We anticipate that our sales recovery will be gradual and that for a period of time, we will be a smaller company,” Macy’s Chief Executive Officer Jeff Gennette stated during a call with investors.
The company will release more details about its quarterly performance on June 9 and its earnings for the first-quarter period on July 1.
Macy’s shares jumped by 3% at $5.22 in the morning trade.