Macy's Sales Slump, Shares Drop

Macy's ($M@US) shares dropped after it announced a downward revision of its full-year outlook and weak sales in late March. Earnings per share were 56 cents adjusted versus the 45 cents expected, and revenue was $4.98 billion vs. $5.04 billion expected. The department store retailer now anticipates sales for the year to be $22.8 billion to $23.2 billion, lower than the previous projection of $23.7 billion to $24.2 billion. Adjusted earnings per share for the year are now expected to be between $2.70 and $3.20, a significant reduction from the previous guidance of $3.67 to $4.11 per share. Macy's stock fell by as much as 10% in premarket trading.