Why is department store chain Macy’s stock sliding today?

On January 13, 2025By Littum

Macy’s, Inc. (NYSE:M) shares traded lower in premarket Monday after the department store chain gave an update on its fiscal guidance for the fourth quarter.

The company expects fourth-quarter net revenue to reach, or fall slightly below, the lower end of the previously expected outlook of $7.8 billion – $8.0 billion and compared to the estimate of $7.885 billion.

The company now expects that its adjusted earnings per per share for the fourth quarter will remain within the previous forecast of $1.40 – $1.65 against estimate of $1.57.

The retailer reported quarter-to-date comparable sales growth in its forward-looking business, including Macy’s First 50 locations and luxury brands such as Bloomingdale’s and Bluemercury.

Digital sales also saw an increase in comparable sales for the period. However, Macy’s comparable sales were roughly flat quarter-to-date with non-First 50 locations, including non-go-forward locations, performing below expectations and generating negative comparable sales.

Also read: British retail giant Marks & Spencer warns of financial challenges despite strong sales growth in food and retail

Macy’s outlook comes amid a push to build momentum through its “Bold New Chapter” strategy. Announced in February 2024, this strategy aims to improve profitability by eliminating underperforming locations and focusing resources on its more successful stores.

Tony Springchairman and CEO of Macy’s, said, “Reflecting the ongoing positive response to Macy’s First 50 locations, we are pleased to expand initiatives to an additional 75 Macy’s locations in Fiscal 2025.”

“We are well positioned to build momentum with a stronger Macy’s store fleet and our teams focused on the successful execution of the three pillars of our Bold New Chapter strategy.”

Macy’s plans to release its fourth-quarter and year-end results in early March 2025.

Price Action: M shares traded lower by 1.71% at $15.57 in the premarket on the last check Monday.

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This article Why is department store chain Macy’s stock sliding today? originally appeared on Benzinga.com