Retailer Macy's Inc. posted a lower quarterly profit and cut its full-year outlook on Wednesday, sending its shares down.
Earnings fell to $74 million, or 16 cents a share, for the second quarter ended August 4, from $317 million, or 57 cents a share, a year earlier.
The company said it expects per-share profit of 5 cents to 10 cents for the third quarter and $1.70 to $1.80 a share for the fourth quarter, excluding merger costs.
It expects full-year profit of $2.15 to $2.30 a share. That's down from a May forecast of $2.45 to $2.60 per diluted share from continuing operations, excluding merger costs.
Macy's shares dropped 1.2 percent to $31.35 before the bell.
Excluding merger costs, earnings in the second quarter came to 29 cents a share, better than the 26 cents analysts expected, according to Reuters Estimates. Macy's had cut its profit outlook for the quarter in July.
The parent of Macy's and Bloomingdale's said sales fell 1.7 percent. Same-store sales fell 2.6 percent.
While the second quarter was below our initial expectations, we did see improving sales trends through the quarter in former May Company stores and in home-related merchandise categories, Macy's Chief Executive Terry Lundgren said in a statement.
Macy's, based in Cincinnati, has boosted promotions in a bid to spur sales at newer Macy's stores. The company acquired May Department Stores in 2005 and last year converted hundreds of them to the Macy's name.
(Reporting by Karen Jacobs)