Macy’s Sales Trail Estimates Amid Sluggish Demand for Apparel

CINCINNATI, United States — Macy's Inc., the largest U.S. department- store company, posted third-quarter sales that missed analysts' estimates amid sluggish demand for apparel.

Revenue fell 5.2 percent to $5.87 billion in the quarter ended Oct. 31, the Cincinnati-based company said in a statement on Wednesday. Analysts projected $6.1 billion, on average.

Chief Executive Officer Terry Lundgren is working to cut costs and experimenting with lower-priced outlets to boost results. But he was dealt a setback when unseasonably warm weather and slow mall traffic hurt sales of fall goods, forcing the chain to cut prices to eliminate extra stock. The company also is under pressure from activist investor Starboard Value, which wants it to extract more value from its property holdings, and grappling with currency fluctuations.

“Warm weather combined with already weak traffic trends likely led to a shortfall in sales, and we expect inventory to appear elevated across the sector,” Paul Lejuez, an analyst at Citigroup Inc., said in a note earlier this week.

Macy’s fell 4.3 percent to $45 at 8:04 a.m. in early trading in New York. The stock had slipped 28 percent this year through the close of trading Tuesday.

Excluding some items, profit was 56 cents a share in the quarter. Analysts estimated 54 cents, on average.

By Lindsey Rupp; editors: Nick Turner, Kevin Orland.