Macy's shares fell as much as 3% in premarket trading on Wednesday after the retail giant reported first-quarter earnings and revenues that trailed expectations, with a dampened outlook for the year.
Macy's posted 64 cents in adjusted earnings per share, down from 80 cents in the same quarter last year, and below the consensus estimate for 76 cents according to Bloomberg.
Its sales fell to $6.10 billion from $6.27 billion a year ago, missing the estimate for $6.22 billion.
In the statement, CEO Terry Lundgren said, "We are disappointed in our second quarter results, which were impacted by a variety of factors, both internal to the company and in the macroeconomic environment."
"In addition, as a result of the previous port slowdown, planned markdowns in many departments were delayed into the second quarter to clear merchandise that arrived late," Lundgren added.
The company slashed its guidance for full-year sales, and now expects flat comparable sales (at stores open for at least a year) compared to 2% previously forecast.
Separately, Macy's announced that it will "test" the Chinese e-commerce market in a joint venture that will place it on Tmall, Alibaba's online marketplace. The venture is with Hong Kong-based Fung Retailing Limited.
Macy's shares have rallied 12% in the past year.
