Macy's shares are down 14% in the pre-market - the lowest since Feb 2010 - after missing Q2 expectations and cutting its full-year guidance for earnings, blaming weather, fashion, inventory and markdown issues.
Macy's said diluted earnings for the three months ending in July came in at 28 cents per share, down 47.2% from the same period last year and well shy of the Street consensus forecast of 45 cents per share.
But it gets worse, as the company looks into 2019, Macy's said it now sees diluted earnings in the region of $2.85 to $3.05 per share, down from a prior forecast of $3.05 to $3.25 per share.
"We had a slow start to the quarter and finished below our expectations. Rising inventory levels became a challenge based on a combination of factors: a fashion miss in our key women's sportswear private brands, slow sell-through of warm weather apparel and the accelerated decline in international tourism," said CEO Jeff Gennette.
"We took markdowns to clear the excess Spring inventory and are entering the Fall season with the right inventory to meet anticipated customer demand."
"Our 2019 strategic initiatives are on track to contribute to sales growth in the back half of the year, and we have plans to drive productivity and improve gross margins," Gennette added.
"Our team has responded quickly to the external environment, course corrected when needed and we remain confident"
Investors are unhappy
Cue the tweet from the president blasting Jeff Bezos (will Amazon take over the parade?)