What: Macy’s lowers 2022 guidance following their Q2 reports showing deteriorating consumer discretionary spending influenced by the macro-economic downturn.

Why it is important: Macy’s Inc., lowered its forecast for the overall year 2022 citing inflation’s impact on sales and consumer behaviour which caused top- and bottom-line declines.

Operating income dropped to 399 million USD last quarter from 597 million USD in the year-ago period. Net income for the quarter ended July 30 fell to 275 million USD (diluted earnings of 0.99 USD per share) from 345 million USD a year ago (1.08 USD per share).

The company has said it is well positioned to navigate the uncertain landscape as they have gained new customers and have continued strength in its luxury offer. The Q2 results still beat expectations.

Macy’s lowers guidance