What: Macy's has lowered its projections for business in 2023 due to falling profits and revenues in the first quarter.

Why it is important: The retailer saw weaker than expected sales as its consumers are under pressure and spending closer to need.

The company experienced a 7% decrease in net sales and 7.2% decrease in comparable sales while the namesake department store saw a 7.9% decrease.

Bloomingdale's suffered a 4.3% decrease in comparable sales, while Bluemercury saw a 4.3% rise.

One of the main factors cited for the lack of business was failure to offer enough products suitable for colder weather.

Macy's plans to offer more aggressive discounts in Q2. The company is also positive about greater investment in private labels and five growth vectors including personalized shopping experiences, digital strategy, luxury, and smaller formats.

Following these results, Macy’s has lowered its projections for the year, expecting sales to reach USD 22.8 billion to USD 23.2 billion in comparison to its previous expectation of USD 23.7 billion to 24.2 billion.

Macy’s Inc. reports tough first quarter 2023 results