Macy’s has released the preliminary financial results for its fiscal Q1, and its forecast shows just how badly the iconic department store chain has been hit by the coronavirus crisis, reports CNBC. The company said it expects a first-quarter operating loss of between $905 million and $1.1 billion. That’s compared to $203 million in net income for the same quarter a year ago.
As for sales, Macy’s say they could be down as much as 45% due to temporary store closures this year because of the pandemic, and the overall downturn to the economy. A year ago the company posted $5.5 billion in revenue, but for the same period this year the company expects sales to be at or just over $3 billion.
Most of that shortfall is due to Macy’s imposing temporary store closures from March 18 of this year due to the COVID-19 outbreak. However, some of those stores are finally beginning to open in many states. As of the time of this writing, Macy’s says 190 stores have opened, and it expects an additional 80 stores to be opened in time for Memorial Day sales this weekend.
Macy’s will deliver its full fiscal Q1 earnings report on July 1.