Macy’s Is Downbeat on Spending as Credit-Card Delinquencies Rise

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Macy’s Is Downbeat on Spending as Credit-Card Delinquencies Rise
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The retailer said it is continuing its 'cautious approach on the consumer,' citing continuing economic pressures, and reaffirmed its annual sales and...

Macy’s delivered better-than-expected second-quarter earnings but said it was taking a cautious approach to financial forecasts given the continuing economic pressure on consumers.

Lower credit-card revenue also weighed on the results. The company’s “other revenue” category fell by $84 million as credit-card delinquencies increased. The company said it is continuing to take a “cautious approach on the consumer,” citing continuing economic pressure. But it reaffirmed its forecasts for annual sales and earnings, saying it expects net sales of $22.8 billion to $23.2 billion and adjusted earnings per share between $2.70 and $3.20.

The company sees several challenges for consumers ahead, including the resumption of student-loan payments, higher interest rates, and fewer jobs being created.

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