Macy’s shares drop as sales forecast is cut

US retail giant Macy’s cut its full-year same-store sales forecast, after second-quarter sales failed to make up for weakness in the first quarter when harsh winter weather kept shoppers away.

Macy’s earnings for the quarter, ended August 2nd, also missed the average analyst estimate as the company discounted heavily to win business, squeezing gross margins.

The company said yesterday that margins would be flat to slightly down for the rest of the year.

Shares of the company, which also owns the high-end Bloomingdale’s chain, fell as much as 6 per cent.

"Many customers still are not feeling comfortable about spending more in an uncertain economic environment," Macy's chief executive, Terry Lundgren, said in a statement.– (Reuters)