Macy’s Inc. expects to report fourth-quarter sales that were weaker than previously forecast and sees continued pressure on the consumer in 2023.
(Bloomberg) — Macy’s Inc. expects to report fourth-quarter sales that were weaker than previously forecast and sees continued pressure on the consumer in 2023.
Net sales are now expected to be at the low end to midpoint of the previously issued range of $8.2 billion to $8.4 billion, Macy’s said Friday. The company reiterated its previous guidance for adjusted earnings per share and said inventories are on track to be slightly below last year.
Macy’s shares briefly fell as much as 11% in extended trading before paring their decline. Competitors including Nordstrom Inc. and Kohl’s Corp. also traded lower.
What Bloomberg Intelligence Says
“The sales numbers are outweighed by clean inventories — below last year — and the company’s plans to deliver previously forecast EPS of $1.47-$1.67. Management’s caution for 1H isn’t a surprise. We think pervasive industry discounting may have pulled forward some sales from 1H.”
— Mary Ross Gilbert, retail analyst
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Over the holiday season, retailers discounted heavily both to offload excess inventory and to attract consumers who were increasingly pressured by inflation. That strategy was in many cases successful during major holiday shopping events like Black Friday and the week leading up to Christmas. But “the lulls of the nonpeak holiday weeks were deeper than anticipated,” Macy’s Chief Executive Officer Jeff Gennette said in a statement.
“Based on current macroeconomic indicators and our proprietary credit-card data, we believe the consumer will continue to be pressured in 2023, particularly in the first half, and have planned inventory mix and depth of initial buys accordingly,” Gennette said.
(Updates with analyst comment. An earlier version corrected sales figures in the second paragraph.)
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