Macy's Lowers Profit Expectations for Full Fiscal Year in the U.S.

Macy's reported a decline in profits and sales for the third quarter as many of the department store chain's customers continue to shift their spending towards essential items like groceries due to rising prices. The company, which also owns luxury retailer Bloomingdale's and cosmetics chain Bluemercury, raised its annual sales expectations but lowered its profit forecast, citing an uncertain economic environment.

The adjusted annual earnings per share expectation was announced to be between $2.25 and $2.50, which is lower compared to the previous expectation of $2.34 to $2.69 that accounted for an accounting error. Last month, Macy's stated that a single employee had "intentionally" made false accounting entries to conceal delivery expenses of approximately $132 million to $154 million between the fourth quarter of 2021 and the third quarter of 2024. During this period, the company recorded about $4.36 billion in delivery expenses. Before disclosing the error, the company had forecasted profits between $2.55 and $2.90 in August. Macy's shares fell 7% in pre-market trading.