Macy’s forecasts dour 2023, blames higher promotions to counter slow demand
Reuters
Macy’s
Higher rental and food prices have pushed upscale retailers such as Macy’s lower on customers’ list as they either trade down cheaper prices alternatives or cut back on purchases.
Macy’s said it will need to discount further in the second quarter to clear out excess spring and summer stocks.
This comes after the company’s efforts to control promotions and easing costs helped it post a gross margin of 40% in the first quarter, marginally up from a year earlier, and beat profit expectations.
Department store peers NordstromKohl’s
CFRA Research analyst Zachary Warring believes Macy’s is being “more conservative compared to other department stores and apparel retailers which we believe is the right move in this macroeconomic backdrop.”
Shares of the company, which fell as much as 12% after the results, pared some losses and was down 5% in morning trading.
Major U.S. companies including Target
CEO Jeff Gennette
It sees adjusted full-year profit per share between $2.70 and $3.20, compared with $3.67 to $4.11 per share it had forecast previously.
