The company said it now expects comparable-store sales to increase 2% in the year, down from its previous estimate of between 2.3% and 2.5%. Net sales are now expected to be flat year over year, down from the previous estimate of a 0.3% to 0.7% increase, Macy's said.
Earnings are expected be between $3.95 and $4 a share, lower than its previous expectations of earnings between $4.10 and $4.30.
"We are revising the guidance we provided in November and will continue to take the necessary steps in January to ensure a clean inventory position as we enter fiscal 2019," CEO Jeff Gennette said. "Looking back at 2018, we met our goal of returning the company to growth. Our revised guidance is above the expectations we set at the start of the fiscal year, and we expect to deliver our fifth consecutive quarter of positive comparable sales, including 'comping the comp' of the 2017 holiday season."
The downward revisions were a part of the company's announcement of its holiday season sales results. The company's total comps at licensed and fully owned stores rose 1.1% in November and December.
Shares of Macy's were down nearly 19% Thursday.
Macy's wasn't the only major retailer in focus Thursday as companies release their holiday sales numbers this week.