Macy's Stock Dips After Lower Sales Outlook: Retail Mood Sours

Shares of department store Macy’s Inc. ($M) dropped 8% on Monday after the company lowered its sales outlook for its fourth-quarter, dampening retail sentiment.

It now expects its net sales to come in between $7.8 billion to $8 billion, slightly below its previous range.

The company now expects fourth-quarter 2024 adjusted diluted earnings per share to be in-line with its previously issued range of $1.40 to $1.65

​​Macy’s go-forward business saw quarter-to-date comparable sales growth, with Macy’s First 50 locations and luxury retailers Bloomingdale’s and Bluemercury seeing positive comparable sales trends, the company said. Macy’s digital channel has also seen comparable sales growth for the period.

“Reflecting ongoing positive response to Macy’s First 50 locations, we are excited to expand initiatives to an additional 75 Macy’s locations in fiscal 2025,” Tony Spring, Macy’s CEO said in a statement. “We are well-positioned to build momentum with a stronger Macy's store fleet and our teams focused on successfully executing the three pillars of our Bold New Chapter strategy.”

Sentiment on Stocktwits turned ‘bearish’ from ‘neutral’ a week ago. Message volumes improved ot ‘high’ from ‘low.’

Macy’s recently announced it will close 66 store locations as part of its “bold new chapter” strategy, which aims to return the company to “sustainable, profitable sales growth.”

Macy’s plans to shutter about 150 “underproductive stores” over a three-year period, while investing in its 350 “go-forward” Macy’s locations through fiscal 2026, the company has said earlier.

Macy’s stock is down 14% year-to-date.

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