(Reuters) – Macy’s cut its annual net sales forecast on Wednesday as inflation drew customers away from its high-end clothing and accessories.
The U.S. department store chain now expects annual net sales of between $22.1 billion and $22.4 billion, compared with $22.3 billion to $22.9 billion previously.
The lowered forecast is the result of a “more demanding consumer and a more intense promotional environment,” Macy’s said in a statement.
The results contrast with those of Walmart and Target, which have raised their forecasts amid strong demand for low-cost staples.
Macy’s net sales fell 3.8 percent to $4.94 billion in the second quarter, well below analysts’ expectations for a 0.23 percent decline to $5.12 billion, according to LSEG data.
The group also recorded a 1.1% drop in comparable sales at its Bloomingdale’s brand during the quarter, after a 0.8% increase in the previous quarter.
In New York, Macy’s shares fell 10% in pre-market trading.
(Report by Juveria Tabassum; by Mara Vîlcu, edited by Augustin Turpin)
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