Shares of Macy's (M) - Get Report  were falling more than 3% Friday after the retailer was the downgraded to neutral from buy by analysts at Guggenheim who see a tough road ahead for the company. 

The Cincinnati-based retailer is experiencing headwinds now that Guggenheim sees continuing for the foreseeable future. 

"While we respect management's attempts to move fluidly in the ever-evolving retail environment, we no longer see the secular headwinds facing the company abating," Guggenheim's note said.

"Overall, while we continue to believe the company has attractive real estate assets, we are moving to the sidelines on the shares. While we would welcome additional store closures and further debt paydown, with tariffs looming large, we have limited visibility into M's ability to sustain and/or grow earnings in 2020. "

Macy's shares were down 3.41% to $15.03 on Friday. 

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