For the First Quarter of Fiscal 2020: *Net sales decreased 32.7% to $1,173.2 million compared to $1,743.0 million in the first quarter of fiscal 2019 due to the impact of COVID-19. *Comparable sales (sales for stores open at least 14 months, including stores temporarily closed due to COVID-19, and e-commerce sales) decreased 35.3% compared to an increase of 7.0% in the first quarter of fiscal 2019. The 35.3% comparable sales decrease was driven by a decline of 38.6% in transactions which was partially offset by a 3.3% increase in average ticket. *Gross profit decreased to $303.6 million compared to $644.8 million in the first quarter of fiscal 2019. As a percentage of net sales, gross profit decreased to 25.9% compared to 37.0% in the first quarter of fiscal 2019, primarily due to deleverage of fixed store costs, pressure from channel mix shifts, and deleverage of salon expenses due to lower sales. These pressures were partially offset by lower promotional activity. *Operating loss was $101.5 million, or 8.7% of net sales, compared to operating income of $237.5 million, or 13.6% of net sales, in the first quarter of fiscal 2019. *Net loss was $78.5 million compared to net income of $192.2 million in the first quarter of fiscal 2019.

First Quarter 2020 Summary: • First quarter net loss of $521 million, which included after-tax charges of $173 million related to COVID-19, decreased from net earnings of $37 million during the same period in fiscal 2019. These charges included asset impairments from store closures, premium pay and benefits, and restructuring charges, which were slightly offset by credits from the Coronavirus Aid, Relief, and Economic Security Act (“CARES Act”). • In Full-Price, net sales decreased 36 percent and Off-Price net sales decreased 45 percent compared with the same period in fiscal 2019 due to temporary store closures beginning March 17. • Online demand, which reflects customer orders and therefore removes the timing impacts of shipments and returns, grew 9 percent, consistent with the second half of 2019. Total company digital sales grew 5 percent to reach $1.1 billion in the first quarter. While stores were temporarily closed, the Company’s e-commerce business experienced significant growth in new customers of more than 50 percent. • Gross profit, as a percentage of net sales, was 11 percent, decreasing from 34 percent for the same period in fiscal 2019 due to incremental markdowns to clear excess inventory and deleverage from lower sales volume. Ending inventory decreased 26 percent from last year resulting from the Company’s aggressive actions to reduce receipts and clear excess inventory through increased marketing and promotional activities.

Net sales for the quarter increased 7.3 percent, to $36.45 billion from $33.96 billion last year. Net sales for the first 36 weeks increased 7.8 percent, to $110.94 billion from $102.90 billion last year. Reported net income for the third quarter was $838 million, or $1.89 per share, which was negatively impacted by $283 million pretax, or 47 cents per diluted share, from incremental wage and sanitation costs related to COVID-19. Last year's reported third quarter net income was $906 million, or $2.05 per diluted share, which included the benefit of a non-recurring tax item of $73 million, or 16 cents per share. Net income for the first 36 weeks was $2.61 billion, or $5.89 per diluted share, compared to $2.56 billion, or $5.79 per diluted share, last year.

Gannett Co., Inc today launched “Rebuilding America,” an unprecedented national examination of how America’s economy is rebooting after nearly three months as states reopen for business. This ambitious project involving USA TODAY and Gannett’s 260 daily local news sites will give a coast-to-coast view of the country’s “new economic normal,” as told through the industries powering the national, regional and local economies. Stories will debut on Gannett-owned digital sites beginning today and appear in print editions on May 31 with a nationwide narrative of what consumers, companies and taxpayers can expect as the American economy begins to accelerate again. The project is a sweeping effort by the USA TODAY NETWORK, Gannett’s newsrooms across America, to empower its audience of more than 150 million readers. Gannett is leveraging its unique position as the nation’s largest local news publisher to chronicle the reopening and rebuilding of the nation’s economies – from Providence, Rhode Island, to Palm Springs, California. It’s a sophisticated examination of how communities, which endured shutdowns caused by the coronavirus health crisis, are aiming to recover and what consumers can expect. Journalists across the nation are examining the national and local trends related to a dozen key economic and lifestyle topics, including auto sales; travel/tourism; retail; insurance and financial services; grocery stores; education; sports; home services; medical services; restaurants; and local arts and entertainment. The project maximizes the USA TODAY NETWORK’s ability to thoroughly examine and explain these issues at both the broader national level and from a close-to-home perspective.

The Italian Publishers Association reported eight million fewer books sales, representing some 134 million euros in revenue, in the first four months of 2020, compared with last year. During the period of lockdown, between March 9 and April 12, bookstores saw an an average drop in sales between 70%-85%, depending on whether or not they were able to sell books online and/or offer home delivery of books, the IPA said. Overall, the association anticipates the industry will lose between 650 to 900 million euros worth of sales, representing between 20% to 30% of the overall market, for the year. In 2019, Italian publishers sold some 3.2 billion euros worth of books.