business news

Macy's Cuts Full-Year Forecast, Retail Sector Stocks Slide

Published by: Andy on 11th Nov 2015 | View all blogs by Andy

Macy's Cuts Full-Year Forecast, Retail Sector Stocks Slide

Macy's Inc. reduced its full-year expectations on Wednesday, sending shockwaves of concern among investors over the crucial retail industry. Wednesday's move was the result of several factors, including a warmer-than-usual winter that hurt sales of heavy winter apparel. Macy's also revealed it would not create a real estate investment vehicle for its stores, alarming some investors and causing shares of the company to lose 14 percent of their value on the day. The concern filtered over to other retailers, as Urban Outfitters lost 7.4 percent on Wednesday, and Michael Kors and Fossil each lost more than 4 percent.

The primary reason for Macy's dropping its forecast was a disappointing third quarter, ended October 31st. The company suffered a 3.6 percent decline in sales across stores open at least a year, falling well short of analyst expectations for 0.2 percent growth in same store sales. As a result, the company is now expecting a slide of 1.8 to 2.2 percent in same-store sales for the full year. Macy's is now expecting full-year profits in the range of $4.20 to $4.30 per share, well below previously satated gidance calling for profits of $4.70 to $4.80 per share.

Comments

0 Comments

     
Please login or sign up to post on this network.
Click here to sign up now.