Macy's: lowers sales and earnings forecasts
(CercleFinance.com) - Department store chain Macy's lowered its full-year sales and EPS guidance after posting a greater-than-expected deceleration in sales in the third quarter.
Macy's cut its full-year 2019 EPS forecast range to 2.57 dollars to 2.77 dollars, from 2.85 to 3.05 dollars per share previously.
The US retailer now expects comparable sales to be down by 1% to 1.5% this year, from a previous guidance of 0 to 1% growth.
The company said comparable sales on a proprietary store basis fell 3.9% in the past quarter.
"After seven consecutive quarters of comparable sales growth, we experienced a deceleration in our third quarter sales," Macy's said.
"While we anticipated a negative comp as we were lapping a very strong third quarter last year, the sales deceleration was steeper than we expected," the group added.
Macy's said its third-quarter sales were impacted by the late arrival of cold weather, and continued soft international tourism.
However, the company said it prepared to benefit from a "strong" holiday season.
The shares were down over 5% in pre-market trading on Thursday.
Copyright (c) 2019 CercleFinance.com. All rights reserved.
Macy's cut its full-year 2019 EPS forecast range to 2.57 dollars to 2.77 dollars, from 2.85 to 3.05 dollars per share previously.
The US retailer now expects comparable sales to be down by 1% to 1.5% this year, from a previous guidance of 0 to 1% growth.
The company said comparable sales on a proprietary store basis fell 3.9% in the past quarter.
"After seven consecutive quarters of comparable sales growth, we experienced a deceleration in our third quarter sales," Macy's said.
"While we anticipated a negative comp as we were lapping a very strong third quarter last year, the sales deceleration was steeper than we expected," the group added.
Macy's said its third-quarter sales were impacted by the late arrival of cold weather, and continued soft international tourism.
However, the company said it prepared to benefit from a "strong" holiday season.
The shares were down over 5% in pre-market trading on Thursday.
Copyright (c) 2019 CercleFinance.com. All rights reserved.