Macy’s cuts holiday-quarter forecast citing squeeze on shoppers’

Macy’s on Friday cut its holiday-quarter sales forecast, saying consumers’ budgets are under pressure and that it expects the squeeze to continue into this year.

The department store said net sales are now expected to be at the low- to mid-point of its previously expected range of $8.16 billion to $8.4 billion. It expects adjusted diluted earnings per share to be in the previously issued range of $1.47 to $1.67.

Shares of the company fell more than 3% in aftermarket trading.

CEO Jeff Gennette said Macy’s put up strong Black Friday and Cyber Monday sales, but “the lulls of the non-peak holiday weeks were deeper than anticipated.”

He said in a news release that the retailer, which includes higher-end department store chain Bloomingdale’s and beauty chain Bluemercury, has taken action to prepare for a year that may be tougher. For instance, he said, it has closely managed its inventory so it can stay nimble and has the merchandise that customers want.

Total end-of-quarter inventories are on track to be slightly below last year and down by the mid-teens compared with 2019, Macy’s said.

But Macy’s anticipates a more challenging sales environment ahead, Gennette said.

“Based on current macro-economic indicators and our proprietary credit card data, we believe the consumer will continue to be pressured in 2023, particularly in the first half, and have planned inventory mix and depth of initial buys accordingly.”

This story is developing. Please check back for updates.