Macy’s Inc’s fiscal third-quarter loss tapered more than expected on lower markdowns, but their guidance for the upcoming holiday season failed to meet analysts’ expectations.
The company said it expected it’s fourth-quarter earnings of $1 a share to $1.05 a share, with some-store-sales dropping one-to-two percent. Wall Street, however, was projecting earnings of $1.17 a share.
Other retailers, such as Polo Ralph Lauren Corp. and Fossil Inc, have also given lower-than-expected guidance while offering stronger assessments for their fourth quarters.
Macy’s outlook is reflected in its shares, with the stock down 4.8%. $18.50 in the pre-market.
Department stores have had the largest sales declines of any retail categories because of their extensive exposure to discretionary purchases. Macy’s has morphed its strategy from striving to have a uniform look across the U.S. to acquiring more locally targeted products for their stores.
Chairman and Chief Executive Terry Lundgren said today that the company had an "excellent quarter" given the difficult climate, as business progressively improved each month.
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