Macy’s slashed its full-year net sales guidance on Thursday by almost $1 billion, marking the latest sign that increasingly cash-strapped consumers are pulling back their spending.
The retailer reported net sales of $5 billion in the first quarter, reflecting a 7 percent decline in revenue. The company’s stock declined as much as 10 percent in premarket trading.
Demand weakened significantly in the first half of the year and has crimped sales more than expected, Macy’s CEO Jeff Gennette said.
“We planned the year assuming that the economic health of the consumer would be challenged, but starting in late March, demand trends weakened further in our discretionary categories,” Gennette said in a statement.
The retailer’s full-year guidance for net sales previously stood between $23.7 billion and $24.2 billion as of early March. The revised guidance is now between $22.8 billion and $23.2 billion.
This is a developing story and will be updated.
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1: https://www.washingtonpost.com/business/2023/06/01/macys-outlook-2023/
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