Macy’s is lowering its annual earnings guidance after the department store struggled with a big earnings miss during the second quarter as it was forced to slash prices on unsold merchandise.
The department store said Wednesday a combination of factors including a fashion miss, slow sell-through of warm weather clothing on top of a worsening climate for tourism led to rising inventory levels.
Macy’s is the first major retailer to report quarterly earnings and what it revealed does not bode well for the sector. Shares of major retailers slumped before the market opened. Kohl’s, Dillard’s and Nordstrom all fell between 4% and 6%.