The rebound many retailers enjoyed since the economy was allowed to reopen completely bypassed Macy's (NYSE: M), whose third-quarter earnings report showed the retailer still in freefall. In a harbinger of what might be expected if businesses are forced to close again, the department store chain said revenue fell 23% to $3.99 billion as comparable store sales cratered 20% from the year-ago period. Adjusted profits of $21 million, or $0.07 per share loss last year, swung to $60 million, or $0.19 per share loss this time around. Yet Wall Street actually thought Macy's was going to do even worse, having forecast sales of $3.86 billion and losses of $0.79 per share. Image source: Macy's. Fighting from a position of weakness Despite the retailer surpassing expectations, CEO Jeff Gennette said in a statement Macy's continues "to watch the resurgence of COVID-19 and its potential impact on our business." Although he assured investors Macy's had the right assortment of products heading into the Christmas-selling season, the results this quarter were worse in many instances than those of the disastrous second quarter. Digital sales, for example, grew just 27% in the just-ended period compared to a 53% surge in the second quarter when comps plummeted 35% year over year. The weakened position may hasten Macy's retreat from the shopping mall. It previously said it would close 125 of its 771 stores over the next few years; any new store openings that did occur would be smaller and sited in off-mall locations. While Gennette said he wasn't abandoning shopping malls, he thought it was only the top-tier class A malls that would survive. A further degradation in its operations, even if it's better than Wall Street's lowered expectations, may cause the retailer to revisit its strategy with an eye on further closures. 10 stocks we like better than Macy'sWhen investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.* David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Macy's wasn't one of them! That's right -- they think these 10 stocks are even better buys. See the 10 stocks *Stock Advisor returns as of October 20, 2020 Rich Duprey has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.Source