Macy’s Inc. is taking aggressive action to cope with the coronavirus, in addition to earlier this week temporarily closing all of its stores.
The retailer has decided to access its $1.5 billion credit facility; suspend its regular quarterly cash dividend payout beginning in the second quarter of fiscal 2020, though the dividend payment occurring on April 1 is not affected by the suspension, and is reviewing all nonessential operating expenses for opportunities to lower spending and reduce capital expenditures in 2020. The $24.5 billion retailer has also withdrawn 2020 sales and earnings guidance.
“The retail environment has deteriorated rapidly since we last provided guidance. And while February results met our expectations, we are now operating in an environment with a high degree of uncertainty,” said Jeff Gennette, chairman and chief executive officer, on Friday. “The actions we are announcing today give us additional financial flexibility to address the disruption we are seeing in our business, which we anticipate will continue into the foreseeable future. We are navigating this unprecedented situation thoughtfully and have a cross-functional senior team that is fully dedicated to managing our response and ensuring we make the right decisions quickly. We will continue to take the necessary actions to ensure that Macy’s Inc. and our brands — Macy’s, Bloomingdale’s and Bluemercury — emerge from the other side of this crisis ready to serve our customers and welcome back our colleagues.”