Macy's shares sink as discounts to clear inventory hurt, tourism drops

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Macy's shares sink as discounts to clear inventory hurt, tourism drops
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Macy's Inc cut its full-year earnings forecast on Wednesday after missing e...

) 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%.

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 160-year-old company is pumping money into projects such as remodeling its stores and building up its off-price and online businesses. Macy’s also announced a partnership with fashion resale marketplace thredUP, aimed at helping the chain “reach a new customer and keep them coming back to shop...,” the company said.

Macy’s now expects 2019 adjusted profit to be between $2.85 per share to $3.05 per share, down from a previous forecast of $3.05 to $3.25.

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