Macy’s (NYSE: M) experienced a loss during its third quarter and sales ultimately fell 22% amid the ongoing global pandemic. Executives revealed that stores may need to temporarily close again as cases across the nation increase, possibly before the awaited holiday shopping season.
The company already shuttered its El Paso, Texas location as cases in the city overwhelmed morgues. The United States has registered over 100,000 daily Covid infections within the last two weeks.
“Covid is surging again across the country,” CEO Jeff Gennette said during a post-earnings call with analysts. “And that continues to impede our recovery, in international tourism and urban areas. And the supply chains have opened up, yet problems remain.”
Gennette added that the company’s online business which has grown 27% in the last quarter alone, is foreseen to skyrocket “at a very aggressive rate.”
The most affected location has been its Herald Square store located in New York City. Due to the lack of incoming tourists and daily workers, traffic has come to a near standstill.
Nevertheless, Genette revealed he has high hopes for the company’s recovery. He said that Macy’s is keeping a close eye on various communities and is prepared for more store closures. “We are getting expert at this,” he said. “We’re ready to go, no matter what comes our way.”
“A vaccination is obviously on everybody’s mind, … and I think there is going to be a surge of demand when that happens,” he said.
Macy’s shares remained stagnant midday Thursday.