Macy's Drops After Retailer Cut Its Outlook

Macy's has reduced its full-year earnings outlook due to weakened demand in discretionary categories starting in late March. Despite adjusted EPS beating estimates, the stock market reacted negatively, with shares dropping over 5%. The company lowered its EPS range and sales guidance, citing the need for further markdowns to manage excess spring inventory, a persistent issue for many retailers.

What did Macy's CEO anticipate about the economic health of consumers?

• The economic health of consumers would be challenged.

• Consumers would have increased spending power.

• Consumers would focus more on luxury items.

• There would be no change in consumer spending habits.

How did Macy's stock perform in the market after the earnings outlook revision?

• Shares remained stable.

• Shares increased by 10%.

• Shares dropped by over 5%.

• Shares increased by 5%.

What was the main reason for the negative market reaction to Macy's stock?

• Gloomy guidance overshadowing positive earnings.

• Positive earnings report.

• New store openings.

• Increase in consumer spending.

What action is Macy's planning to take to manage its inventory?

• Expand warehouse space.

• Take further markdowns.

• Increase prices.

• Introduce new product lines.

What has been a persistent issue for many retailers, including Macy's?

• Limited product variety.

• Excess spring inventory.

• Lack of online presence.

• High employee turnover.