Macy’s shares crater 18% on weak holiday sales results, slashed outlook – CNBC

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January 10, 2019 1:03 pm Published by

Macy’s shares tanked more than 18 percent in pre-market trading Thursday after the department store chain reported weak holiday sales results for 2018 and cut its earnings outlook for the year.

The company said online sales in November and December as well as at stores operating for at least 12 months were up a combined 1.1 percent.

CEO Jeff Gennette said in a statement the holiday season started strong for Macy’s during Black Friday weekend “but weakened in the mid-December period and did not return to expected patterns until the week of Christmas.”

He added Macy’s didn’t perform as well during the holidays in categories including women’s sportswear, sleepwear, fashion jewelry, fashion watches and cosmetics.

Based on Thursday’s results, Macy’s said it now expects no growth in net sales for fiscal 2018, instead of its previous projection of an increase of between 0.3 and 0.7 percent. It’s now calling for diluted earnings per share to fall within a range of $3.95 to $4, compared with a prior range of $4.10 to $4.30. Analysts were calling for earnings of $4.23 a share, according to a survey by Refinitiv.

Meantime, Macy’s said it now expects same-store sales to be up just roughly 2 percent in fiscal 2018, down from a prior range for same-store sales growth of between 2.3 to 2.5 percent.

This story is developing. Please check back for updates.

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