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Macy's cuts outlook and shares plunge

Posted at 8:39 AM, Aug 14, 2019
and last updated 2019-08-14 08:39:51-04

CINCINNATI (AP) — Macy's is lowering its annual earnings guidance after the department store struggled through the second quarter and was forced to mark down prices.

The department store said Wednesday a combination of factors including a fashion miss, slow sell-through of warm weather fashions and the accelerated decline in tourism caused rising inventory levels.

RELATED: Macy's announces multi-year restructuring plan

Macy's reported second-quarter profit of $86 million, or 28 cents per share. That's far from the per share earnings of 45 cents that Wall Street was looking for, according to a survey by Zacks Investment Research.

Revenue of $5.55 billion also fell short and shares plunged 11% before the opening bell.