Macy’s stock is down 8% after the department store operator lowered its full-year sales guidance.
Macy’s said it now expects 2024 sales of $22.10 billion U.S. to $22.40 billion U.S., which is lower than the $22.30 billion U.S. to $22.90 billion U.S. that it had previously forecast.
Management also said that they expect comparable sales for all of this year to range from a decrease of 2% to a decline of 0.50%.
Previously the company said that it expected comparable sales to range from a decline of 1% to a gain of 1.5%.
In its earnings release, Macy’s said that it is struggling with what it called “selective shoppers” that have forced it to rely more on promotions and discounts to move merchandise.
Beyond the lowered guidance, Macy’s reported mixed financial results for this year’s second quarter.
The New York City-based company announced earnings per share (EPS) of $0.53 U.S., which beat consensus forecasts of $0.30 U.S.
However, revenue of $4.94 billion U.S. missed Wall Street forecasts that called for sales of $5.12 billion U.S. Sales were down 4% from a year ago.
Macy’s has been struggling with declining sales for several quarters. Earlier this year, the company announced plans to close 150 of its stores by early 2027.
At the same time, Macy’s is opening smaller stores in suburban strip malls and adding new locations of its better-performing brands Bloomingdale’s and Bluemercury.
Recently, Macy’s has had to contend with activist investors Arkhouse Management and Brigade Capital that offered to take the company private. Macy’s ended up rejecting that offer.
Before today (Aug. 21), the stock of Macy’s had declined 10% on the year and was trading at $17.74 U.S. per share.
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