Macy’s cut its full-year earnings forecast after missing Wall Street estimates for quarterly profit for the first time in two years, as the department store operator discounted heavily to clear spring inventory, sending its shares down 13 percent.
The company said Wednesday that inventory became a challenge as it also missed the mark with its key women’s sportswear private brands and a higher decline in international tourism.
“We had a slow start to the quarter and finished below our expectations,” chief executive officer Jeff Gennette said in a statement.
The company has entered the fall with the right inventory, he added.
Macy’s now expects 2019 adjusted profit to be between $2.85 per share and $3.05 per share, down from a previous forecast of $3.05 to $3.25.
Net income attributable to Macy’s shareholders slumped 48 percent to $86 million, or 28 cents per share, in the second quarter ended Aug. 3.
Analysts had expected the company to earn 45 cents per share, according to IBES data from Refinitiv.
Macy’s shares, which declined about 35 percent this year, are set to open near a 10-year low.