Shares of Macy's M.N drop ~3% to $20.96 in early trading
The department store's bigger-than-expected loss forecast for the current quarter, driven by increased store investments tied to turnaround plans, overshadows its raised annual targets
Macy's expects Q3 adjusted loss of 19 cents to 23 cents per share, compared with analysts' estimates of a 6-cent loss - data compiled by LSEG
As of last close, the stock was down ~2% year to date
Raised annual targets and second-quarter results
Macy's raises fiscal 2026 net sales estimates to $21.68 billion to $21.83 billion, from $21.50 billion to $21.75 billion earlier
It also sees adjusted EPS of $2.15 to $2.35 vs. its prior target of $2 to $2.20
The company also beats Q2 sales and profit estimates
Investors could be worried that economic conditions are affecting Macy's and forcing it to spend more to maintain sales, Morningstar analyst David Swartz said
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