Macy's revises guidance to reflect weak economy

CINCINNATI Macy’s Inc. reported that in light of the weakening economic environment, it has updated its 2008 sales and earnings guidance.

The company forecasts that ifweaker sales trends continue, same-store sales in the fall season could be down by 3% to 6%. (Previous guidance was for fall season same-store sales to be flat to down 1%.) Based on the potential for lower sales, the company’s guidance now is for earnings per share on a diluted basis of approximately $1.30 to $1.50 for fiscal 2008 as a whole, excluding one-time division consolidation costs and impairment charges. Previous guidance was for earnings of $1.70 to $1.85 per diluted share, excluding division consolidation costs and impairment charges.

“We are continuing to manage our business well in this tough economic environment, while simultaneously offering customers exciting fashion product and great value. We expect this will result in sales performance that continues to outpace key competitors, as we have done throughout the year-to-date period,” said Terry Lundgren, chairman, president and ceo of Macy’s Inc. “We have a strong and experienced organization that is committed to maximizing performance through the upcoming holiday season, and to continue to implement the My Macy’s localization initiative that we believe will position us well in 2009 and beyond.”