Macy’s saw its stock fall more than 12% to $US25.72 after reporting same-store sales missed consensus estimates by more than a full percentage point.
The department store chain said comparable sales on an owned plus licensed basis contracted by 4.6% in the first quarter, missing analyst forecasts of a 3.5% year-over-year decline. Macy’s also reported an adjusted loss of 24 cents per share, falling short of the consensus estimate of a 35 cent per share loss.
“Our first quarter sales and earnings results were consistent with our expectations, and we remain on track to meet our 2017 guidance,” president and CEO Jeff Gennette said in a statement. “In 2017, we are focused on taking actions to stabilise our brick and mortar business, including the testing and iteration of additional pilot programs in order to bring them to scale in future years.”
The share decline is more bad news for Macy’s shareholders, which have seen the stock plunge 35% through Wednesday’s close after reaching a more than one-year high on November 23.
The broader sector has fallen on hard times as of late, with US retailers closing stores and filing for bankruptcy at rates not seen since the financial crisis.
Macy’s, Sears, JCPenney, and more than a dozen other national retailers have also announced mass store closings this year. The total now stands at more than 3,200 stores this year.