The shares of the high-end department store chain dropped by 4.2% as lowered demand is expected to persist throughout this year. Macy's competitors Nordstrom and Kohl's Corps shares also dropped above 2%.
Macy's pinpoints inflation of essentials like food and gas as the trigger of changing consumer patterns. Customers can expect higher discounts and frequent sales as shopping retailers aim to clear their inventories of athleisure apparel.
Despite Black Friday and Christmas yielding profits that surpass expectations, Macy's warns that net sales will still be lower even with the promotional discounts due to the higher-than-predicted plunge in the period between the occasions.
Jeff Gennette, Macy's Chief Executive Officer (CEO), assured shareholders that “the company is already implementing strategies to counter the revenue depreciation from the softening market.”
Macy estimates its net sales to be at the lower end of the $8.16 billion to $8.40 billion range it previously forecasted. Meanwhile, the forecast for the $1.47 to $1.67 adjusted earnings per share remains.