Macy’s posts 48% drop in profit, cuts full-year forecast

Macy’s posts 48% drop in profit, cuts full-year forecast

FILE PHOTO: The Macy’s logo is pictured on the side of a building in down town Los Angeles, California, U.S., March 6, 2017. REUTERS/Mike Blake/File Photo

(Reuters) – Macy’s Inc (M.N) reported a 48% fall in quarterly profit and cut its forecast for full-year adjusted earnings on Wednesday, as the department store operator discounted heavily to clear excess inventory, sending its shares down 13%.

Net income attributable to Macy’s shareholders fell to $86 million, or 28 cents per share, in the second quarter ended Aug. 3, from $166 million, or 53 cents per share, a year earlier.

“We had a slow start to the quarter and finished below our expectations,” Chief Executive Officer Jeff Gennette said.

The company now expects 2019 adjusted profit to be between $2.85 per share to $3.05 per share, from a previous guidance of $3.05 to $3.25.

Reporting by Aishwarya Venugopal in Bengaluru; Editing by Sriraj Kalluvila

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