Macy's stock plummeted 5.77% in pre-market trading following the release of its third-quarter results and updated annual forecasts. The sharp decline reflects investor disappointment with the company's forward-looking guidance.
The retailer reported a weaker-than-expected outlook for fiscal year adjusted earnings per share ($2.00 - $2.20 vs. analyst estimates of $2.37) and net sales ($21.475 billion - $21.625 billion vs. estimates of $22.59 billion). This miss overshadowed positive Q3 results, including a beat on adjusted EPS ($0.09 vs. estimate $-0.14) and net sales ($4.71 billion vs. estimate $4.60 billion).
While Macy's demonstrated resilience in Q3 with comparable sales growth and profitability, the lowered annual forecasts suggest challenges ahead, prompting a sell-off in pre-market trading.
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