Macy's cuts full-year forecasts as inflation hits department store spending
Macy's joins rival Kohl's in seeing sales hit by slump in casual apparel
Strategic Resource Group managing director Burt Flickinger and Jackson Square Capital CEO Andrew Graham discuss how the shift in consumer spending due to inflation could impact earnings in the retail space on 'The Claman Countdown.'
Macy's Inc cut its full-year sales and profit forecasts on Tuesday as decades-high inflation saps consumer spending power for apparel and other discretionary products, especially among lower-income shoppers.
The department store chain joins rival Kohl's Corp in seeing its sales squeezed by a slump in demand for casual and athleisure apparel, and steeper discounts to get rid of excess inventories.
Macy's said it expects fiscal 2022 adjusted earnings of $4.00 to $4.20 per share, compared with its previous forecast of $4.53 to $4.95 per share.
KOHL'S CUTS ANNUAL FORECASTS AS INFLATION SQUEEZES DEMAND
| Ticker | Security | Last | Change | Change % |
|---|---|---|---|---|
| M | MACY'S INC. | 15.40 | +0.34 | +2.22% |
BED BATH & BEYOND SHARES SPIKE AGAIN AMID RETAIL INVESTOR FRENZY
The company forecast 2022 net sales of $24.34 billion to $24.58 billion, compared with its previous outlook of $24.46 billion to $24.70 billion.
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Comparable sales at Macy's owned stores fell 1.5% in the second quarter, compared with analysts' estimates of a 2.2% fall, according to Refinitiv IBES data.