Does Macy's Excellent Q1 Mean Its Debt Troubles Are Gone?
Macy's (NYSE: M) first-quarter results were a sigh of relief for all stakeholders. But, unfortunately, the department store retailing giant was one of the companies that was severely negatively affected by the coronavirus pandemic. Sales cratered at the onset as it had to close all of its stores to in-person shopping. That put Macy's in a bit of a liquidity crunch, and it tapped credit facilities and increased other borrowings.
The combination of an increased debt burden with reduced operations became a focus for shareholders of the retailer. However, as states are easing business restrictions and people are moving around more often, sales are surging at Macy's. So it appears that the worst of the pandemic is over for Macy's, and it's on a path to recovery. Let's take a closer look at whether that means its debt load is less of a strain now.
Macy's reported $4.7 billion in sales in the first quarter. Image source: Getty Images.
Source Fool.com
