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Macy's suspends quarterly dividend, withdraws 2020 forecast

Published 03/20/2020, 05:10 PM
Updated 03/20/2020, 05:15 PM
© Reuters.

(Reuters) - Macy's Inc (N:M) said on Friday it would suspend its quarterly dividend and withdrew its 2020 sales and profit forecasts due to ongoing disruptions from store closures on the back of the fast-spreading coronavirus.

The company said it would borrow $1.5 billion from a revolving credit facility to brace the impact from the pandemic.

"The retail environment has deteriorated rapidly since we last provided guidance ... we are now operating in an environment with a high degree of uncertainty," Chief Executive Officer Jeff Gennette said in a statement.

The company has already shut stores for two weeks in the United States on March 18, but has kept its online operations open for business.

Macy's had declared a quarterly dividend of 37.75 cents per share, payable on April 1, which will not be affected by the suspension.

The company said it is also reviewing all non-essential expenses to lower its 2020 capital expenditure.

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