Macy’s suspends quarterly dividend, withdraws 2020 forecast

(Reuters) – Macy’s Inc 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)