NEW YORK — Macy's Inc. reported a disappointing profit for its second quarter and cut its outlook for the year on Wednesday. The department store chain blamed shoppers' reluctance to spend for a rare slip in sales. Its shares fell 4 percent in regular trading. Over the past year, its stock is up almost 27 percent.
The second-quarter weakness raises worries about consumer spending, an important part of the economy, and how other merchants fared during the spring and early summer.
Macy's, the first of the major retailers to report second-quarter results, has been a standout among its peers throughout the economic recovery. It's a barometer of spending among middle- to upper-income shoppers.
Wal-Mart Stores Inc., Kohl's Corp. and Nordstrom Inc. are among the major retailers scheduled to report later this week. Like other retailers, the Cincinnati-based operator of Macy's and Bloomingdale's is grappling with a yo-yo economic recovery that's making people careful about their purchases heading into the heart of the key back-to-school selling period.
While jobs are easier to get and the turnaround in the housing market is showing promise, the improvements haven't been enough to get most Americans to spend more. Most are juggling tepid wage gains with higher costs of living. "We believe that much of our weakness is due to the health of the consumer and to the fact that consumers seem to be choosing to make purchases in non-department store categories such as cars, housing and home improvement," Karen Hoguet, Macy's chief financial officer, said during a conference call with investors.
