- Sales fell 7.4%, making fifth consecutive quarter of decline
- Expects like-for-likes to fall 3% to 4%, rather than 1% previously forecast
- Comes after January store closures and mass redundancies
Macy’s has issued a profit warning after its sales dropped in the first quarter because of falling tourist numbers and discounter competition.
Macy’s sales fell 7.4% to $5.77bn (£4bn), its fifth consecutive quarterly fall. Net profit plummeted 40% to $116m (£80m). It now expects like-for-likes to fall 3%-4%, as opposed to the 1% previously predicted by analysts.
In January, Macy’s, along with rival JC Penney, closed stores and axed thousands of roles.
The company has added strings to its bow recently, opening its own discount chain, Macy’s Backstage, in a bid to compete with discounters and acquiring online beauty and spa retailer Bluemercury.
Macy’s chairman and chief executive Terry Lundgren said: “We are not counting on the consumer to spend more, so we are working harder to give customers more reasons to buy from us.
“Given that the first quarter is a relatively small portion of the total year, we have an opportunity to make up some ground in the months ahead, and particularly in the fourth quarter.”