Macy’s (NYSE:M) shares fell on Thursday, as the retailer slashed its full-year outlook and said it saw sales significantly weaken in late March.
The department store operator said it now expects sales of $22.8 billion to $23.2 billion for the year, down from a previous range of $23.7 billion to $24.2 billion. Macy’s anticipates comparable owned-plus-licensed sales will fall 6% to 7.5% during the period, worse than its previous outlook of a 2% to 4% decline.
For the year, it expects adjusted earnings per share of $2.70 to $3.20 — a major reduction from the previous $3.67 to $4.11 a share guidance.
CEO Jeff Gennette told the media the retailer took a conservative stance for the rest of the year after seeing a spring pullback. He said the company anticipates more markdowns of seasonal merchandise and cut orders as it prepares for the coming quarters.
Weaker sales cut across Macy’s brands, including higher-end Bloomingdale’s and beauty chain Bluemercury, he said.
First-quarter net income for Macy’s was $155 million, or 56 cents per share, compared with $286 million, or 98 cents per share, a year earlier.
Revenue fell about 7% to $4.98 billion from $5.35 billion in the year-ago period. Sales missed analysts’ forecast.
M shares fell 41 cents, or 3%, to begin Thursday at S13.18.
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