23/08/2022
Macy’s Cuts Earnings Outlook as Markdown Season Looms
Retailer’s quarterly results top expectations, even as shoppers spend less on discretionary items Macy’s Inc. M 3.12%▲ became the latest retailer to lower its financial guidance for the year, citing risks of a steeper economic downturn and slowdown in consumer spending.
The New York department-store chain on Tuesday said cutting its sales and earnings forecast also takes into account the markdowns and promotions the company thinks will be needed to get rid of old inventory.
The revision comes despite the company posting better-than-expected results for its second quarter. Same-store sales, or sales from stores that have been open at least a year, fell 1.5% from the previous year. Analysts polled by FactSet expected a 2% drop.
The company’s shares rose about 2% in premarket trading. Through Monday, shares were down nearly 29% for the year.
