(Bloomberg) -- Macy’s Inc. gave investors its third sales update in as many months as the struggling retailer tries transparency in an effort to assuage Wall Street.
As part of its first-quarter earnings release, Macy’s reported a pre-tax goodwill charge of $3.1 billion, in addition to an $80 million impairment charge related to long-lived assets. The company said it had to record the charges after its long-term projections and market capitalization changed following the Covid-19 pandemic that has ravaged traditional retail.
Shares were little changed in early trading.
The department store chain said in the release it continues to expect a “gradual sales recovery.” Net sales were $3 billion, or a 45% plunge from the same period last year. It had previously disclosed that number in an earlier preliminary report.
Nearly all Macy’s stores have reopened after being shut down because of the pandemic. Nonetheless, “we expect that the Covid-19 pandemic will continue to impact the country for the remainder of the year. We do not anticipate another full shutdown, but we are staying flexible and are prepared to address increases in case on a regional level,” Chief Executive Officer Jeff Gennette said
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