Macy's, Inc. (NYSE:M) shares tumbled 14% as the department store chain downwardly revised its full year sales forecast as it struggles with curbed consumer spending and a bigger than anticipated hit from promotions.
It now expects net sales in the range of $22.1 billion to $22.4 billion, or down between 2% to 0.5% from 2023.
This is down from its earlier guidance range of $22.3 billion to $22.9 billion, or down 1% to up 1.5%, and below analysts’ forecast of $22.7 billion.
It reiterated its profit guidance of earnings per share (EPS) in the range of $2.55 to $2.90, with the midpoint of $2.73 shy of Street estimates of $2.80.
Macy’s guidance update overshadowed better-than-expected profits for the second quarter.
Adjusted EPS was $0.53, up from $0.26 in the year-ago quarter and topping estimates of $0.32.
Revenue, however, was down 3.8% at $4.9 million, missing the consensus of $5.09 billion.
“During the second quarter, we delivered strong earnings performance in a challenging consumer environment,” Macy’s CEO Tony Spring said in a statement.
“We are encouraged by the early traction of our Bold New Chapter and remain committed to returning Macy’s to sustainable profitable growth.”
Shares of Macy’s traded hands at about $15 late morning on Wednesday.