Macy's CFO reveals 4 reasons the company blew it last quarter
The department store chain cut its annual profit forecast on Wednesday after posting a quarterly sales decline of 5.2%, with same-store sales falling 3.9%.
Macy's shares dropped 14% on Wednesday, which was the biggest one-day decline in seven years.
4. Demand for some of Macy's biggest brands is weakening.
The company is planning to offer deep discounts to help spur spending.
"That will be good for consumers, but it will obviously put pressure on our own margins," Lundgren said.
Macy's expects sales to decline between 2% and 3% in the fourth quarter, which includes the holiday shopping season.
"I wish I could say it's going to get ice cold across the country, I wish I could say that tourists are going to begin to show up and start spending, but you can see in our forecast for fourth quarter, we're not expecting that," Lundgren said.
Macy's is also suffering from an outdated fleet of stores, according to Neil Saunders, the CEO of Conlumino, a retail consulting firm.