Macy’s cuts forecast on inventory glut

Bloomberg

Macy’s Inc cut its full-year forecast for profit and revenue, citing tighter consumer budgets and an industrywide inventory glut that is leading to steeper markdowns.
Earnings per share, excluding some items, are now expected to be at least $4 for the fiscal year, compared with a prior outlook of at least $4.53, Macy’s said in a statement. The department-store chain also trimmed its forecast for annual sales.
Like retail peers, Macy’s is contending with shifting consumer preferences since the early days of the pandemic amid persistent inflation. That comes on top of its market-share losses over the last decade. The chain says it will have to carry out more promotions to meet its goal of reducing excess inventory by year end.
Macy’s said its revised outlook “incorporates the risk it sees in the continued deterioration of consumer discretionary spending in some of its categories and the level of inventory within the industry, as well as risks associated with a more pronounced macro downturn.”