World News

Macy’s suspends quarterly dividend, withdraws 2020 forecast

(Reuters) – Macy’s Inc <M.N> 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.

(Reporting by Nivedita Balu in Bengaluru; Editing by Maju Samuel)