Macy’s, impacted by the pandemic, posted a net loss of $91mn, in the third quarter, versus a net profit of $2mn, in the year-ago period. Revenues fell to $3.99bn in the last quarter ended Oct. 31, from $5.17bn in the year-ago period. Comparable sales were down 20.2% even as stores continued to recover and there was continued growth of the digital business. Digital sales grew 27% over third quarter 2019, and represented 38% of total owned comparable sales. Earnings before interest, taxes, depreciation and amortization were $113mn, compared to $300mn in the 2019 period. Macy’s said it achieved positive EBITDA one quarter sooner than expected and that it ended the third quarter with in a “strong” liquidity position with approximately $1.6bn in cash and approximately $3bn of untapped capacity in the company’s asset-based credit facility

Gross margin was 35.6% compared to 23.6% in the second quarter of 2020, an improvement of approximately 12%. Customers shopped across all channels in the third quarter and responded well to expanded fulfilment offerings, such as curbside, store pickup and same-day delivery. Customers have shifted their spending to casual apparel and categories they can enjoy as they stay at home. Several of these categories, including home furnishings, jewellery and fragrance, have generated double-digit sales growth compared to last year.