Macy's Inc. shares dropped 19% on Jan. 10 after lowering its diluted EPS and sales outlook for fiscal 2018.
The department store chain now expects full-year diluted EPS to come in at $3.95 to $4, down from its prior range of $4.10 to $4.30. It predicts that net sales growth will be flat, compared to its previous expectation of 0.3% to 0.7%.
The adjustments come after the company reported positive comparable sales results for the holiday period. Owned comparable sales increased by 0.7% in November and December 2018 while owned plus licensed comparable sales rose 1.1%.
"The holiday season began strong — particularly during Black Friday and the following Cyber Week, but weakened in the mid-December period and did not return to expected patterns until the week of Christmas," Chairman and CEO Jeff Gennette said.
The results mark Macy's second consecutive year of positive holiday comparable sales.