Macy's lowers 2008 forecast |
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| Tuesday, 14 October 2008 | |
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Macy's, Inc. has lowered its full year sales and earnings guidance after third quarter sales look set to be lower than expected. Macy's Inc.
said that "in light of the weakening economic environment and consumer confidence," it now expects earnings per share on a diluted basis of approximately $1.30 to $1.50 for fiscal 2008. Previous guidance was for earnings of $1.70 to $1.85 per diluted share.
Same-store sales for August and September combined fell 5.8 percent from year-earlier levels, the Cincinnati-based company said, and were down by 3.2 percent in the eight months to September. The department-store operator said if weaker sales trends continue, same-store sales in the fall season could be down by 3 to 6 percent. Previous guidance was for fall season same-store sales to be flat to down 1 percent. Despite lower sales, Macy's said it continues to be financially healthy and said year-to-date cash flow is stronger than anticipated at the beginning of the year. "We are continuing to manage our business well in this tough economic environment, while simultaneously offering customers exciting fashion product and great value" said Terry J. Lundgren, chairman, president and chief executive officer of Macy's, Inc. |
