Macy’s cuts full-year forecasts as inflation hits department store spending
2022.08.23 14:38
The inside of a Macy’s department store is seen in Douglaston, New York, U.S. January 5, 2017. REUTERS/Shannon Stapleton/File Photo
(Reuters) -Macy’s Inc cut its full-year sales and profit forecasts on Tuesday as decades-high inflation saps consumer spending power for apparel and other discretionary products, especially among lower-income shoppers.
The department store chain joins rival Kohl’s Corp (NYSE:KSS) in seeing its sales squeezed by a slump in demand for casual and athleisure apparel, and steeper discounts to get rid of excess inventories.
Macy’s (NYSE:M) said it expects fiscal 2022 adjusted earnings of $4.00 to $4.20 per share, compared with its previous forecast of $4.53 to $4.95 per share.
The company forecast 2022 net sales of $24.34 billion to $24.58 billion, compared with its previous outlook of $24.46 billion to $24.70 billion.
Comparable sales at Macy’s owned stores fell 1.5% in the second quarter, compared with analysts’ estimates of a 2.2% fall, according to Refinitiv IBES data.
