FOX19/AP - Macy's is slashing its full-year profit and sales outlook with its shoppers in an extended funk.
First-quarter net income tumbled 40 percent, to $115 million, or 37 cents per share. Adjusted per-share earnings were 40 cents per share, 4 cents better than Wall Street had expected, according to FactSet.
Revenue fell 7.4 percent to $5.77 billion, worse than the $5.93 billion analysts expected. Revenue at stores open at least a year fell 5.6 percent, the fifth consecutive quarter of declines. Macy's expects comparable store sales for the year of 3 percent to 4 percent for the year, which also disappointed Wall Street. Shares plunged Wednesday.
"Our management team is rising to the challenge and aggressively changing our playbook to gain market share and accelerate progress and results for remainder of 2016 while also continuing to build for the longer term," said Terry Lungren, Macy's, Inc. CEO.
The retailer had been stellar performer but over the last year and a half it has stumbled amid stiffer competition and a changing shopper.
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