August 14, 2019
By Aishwarya Venugopal and Melissa Fares
(Reuters) – Macy’s Inc cut its full-year earnings forecast on Wednesday after missing estimates for quarterly profit for the first time in at least two years, as it discounted merchandise heavily to clear spring inventory, sending its shares down as much as 18%.
The largest U.S. department store operator, whose flagship building in Manhattan is a major tourist attraction, blamed a bigger-than-expected decline in tourist spending for the shortfall along with weak demand for its own-brand women’s sportswear and for warm weather apparel.
“We had a slow start to the quarter and finished below our expectations,” Chief Executive Jeff Gennette said in a statement.
Tourist arrivals to the United States have taken a hit in the past year, hurt by a stronger dollar and escalating trade tensions between Washington and Beijing, denting the number of Chinese visitors to the country.
The number of Chinese citizens arriving in the United States dipped 2.8% in the first six months of the year, according to the National Travel and Tourism Office.
Like its peers, the Cincinnati, Ohio-based retailer, which has closed more than 100 stores since 2015 and cut thousands of jobs as mall traffic plummeted, faltered in the …read more
Source:: One American News Network