Profit Plunges at Macy's on Inventory Challenges
On Wednesday morning, Macy's (NYSE: M) revealed that it achieved its seventh consecutive quarter of comparable-store sales growth in the second quarter of 2019. Unfortunately, that sales volume came at the expense of gross margin, so Macy's posted a sharp drop in its profitability for the quarter. It also reduced its full-year guidance for earnings per share.
Not surprisingly, investors responded to this news by dumping Macy's stock. Indeed, shares of the department store giant plunged below the $16 mark in morning trading for the first time in nearly a decade, before bouncing back a bit by noon EDT. However, investors may be overreacting to this setback.
Source Fool.com
