Jan 6 (Reuters) – Macy’s Inc (M.N) mentioned on Friday it expects fourth-quarter gross sales to come back in on the decrease finish of its forecast, blaming a deeper-than-expected lull in purchasing between the season’s main holidays.
Shares of the division retailer chain fell 4.2% in prolonged buying and selling because it additionally warned that client spending would stay below strain in 2023, particularly within the first half. Rivals Nordstrom Inc (JWN.N) and Kohl’s Corp’s (KSS.N) shares additionally fell greater than 2%.
Surging costs of meals and gasoline drove down demand for non-essential merchandise final yr, forcing Macy’s and different retailers into steeper reductions and promotions to clear extra shares of informal and athleisure attire.
Whereas that helped gross sales throughout main purchasing events akin to Black Friday and Christmas, Macy’s mentioned the durations in between these days noticed bigger-than-expected drop-offs in spending.
Chief Govt Officer Jeff Gennette mentioned the corporate had taken steps to raised align its merchandise with the anticipated slowdown in demand.
Macy’s web gross sales are actually anticipated to be on the low finish to mid-point of its beforehand forecast vary of $8.16 billion to $8.40 billion. The corporate maintained its adjusted earnings per share forecast of $1.47 to $1.67.
Reporting by Uday Sampath in Bengaluru; Enhancing by Devika Syamnath
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