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Macy’s sales fell in the third quarter and the retailer lowered its profit outlook for the year.
Shares slid more than 8 percent before the opening bell Wednesday.
“We are disappointed that the pace of sales did not improve in the third quarter, as we had expected,” CEO Terry Lundgren said in a printed statement. “Spending by domestic customers remained tepid, especially in key apparel and accessory categories,”
Sales fell 3.6 percent at established locations during the quarter.
Spending by international visitors in New York and other tourist destinations, with the U.S. currency very strong, continues to plague Macy’s and Bloomingdale’s stores.
Heading into the key holiday shopping season, Lundgren said the company is “shifting our organization into overdrive to focus on sales-driving activities.”
For the quarter ended Oct. 31, Macy’s Inc. earned $118 million, or 36 cents per share. Excluding one-time costs, earnings were 56 cents per share, which was two cents more than analysts expected, according to Zacks Investment Research. The one-time costs were mostly related to the company’s plans to close between 35 and 40 stores early next year.
Total revenue fell to $5.87 billion in the period. That was short of Wall Street forecasts for revenue of $6.15 billion.
The Cincinnati company now expects full-year earnings in the range of $4.20 to $4.30 per share, down from the previous guidance of $4.70 to $4.80 per share.
That is short of the $4.40 that Wall Street was expecting.
Macy’s shares have decreased 28 percent since the beginning of the year.
Elements of this story were generated by Automated Insights using data from Zacks Investment Research.