Macy's, which previously gave up reporting monthly same-store sales results, provided an update on its business this morning. As you may have guessed, the news isn't good.
The company said same-store sales in August and September combined fell 5.8 percent. Year-to-date same-store sales (through September) company-wide are down 3.2 percent. If the weak trends continue, same-store sales could be down 3 to 6 percent for the fall season. Previously, the company had forecast same-store sales for that time frame to be down 1 percent to flat.
As a result, Macy's lowered its guidance to $1.30 to $1.50 for fiscal 2008, vs. its previous estimate of $1.70 to $1.85 per diluted share.
The company stressed in the press release that its balance sheet is still in good shape. It said cash flow has improved despite lower sales as the company suspended its share repurchase program, reduced capital spending and tightly managed inventory and expenses. The company had approximately $740 million in cash and cash equivalents at the end of September, according to the release.