‘The uncertainty moving forward is significant,’ CEO Erik Nordstrom says
Macy’s Inc. and Nordstrom Inc. became the latest retailers to lower their financial goals for the year, citing risks of a steeper economic downturn and slowdown in consumer spending.
Macy’s M, +4.00%, the biggest U.S. department-store chain, on Tuesday said it was also adjusting its forecast to reflect markdowns and promotions the company thinks will be needed to get rid of old inventory.
Nordstrom JWN, +3.90% cited weakness among shoppers at its Nordstrom Rack discount chain, which targets lower-end consumers than its flagship stores. “The uncertainty moving forward is significant,” CEO Erik Nordstrom said on a call with analysts Tuesday.
Macy’s customers across income tiers slowed their spending, Chief Executive Jeff Gennette told analysts on a call. Executives said customers aren’t trading down to less expensive brands, but are being more selective about what categories they shop and taking advantage of widespread promotions being offered by both Macy’s and its competitors.