Macy’s Inc., despite the promotional-charged and competitive retail landscape, forecasts that its fourth-quarter sales and profits will fall inside its guidance issued last November.

Nonetheless, after experiencing deeper-than-expected business lulls during nonpeak periods in December, sales could possibly be on the low end or middle of the guidance, the retailer disclosed Friday.

Within the report, chairman and chief executive officer Jeff Gennette praised his team for operating with “precision and agility” because it managed through the difficult quarter, but in addition sounded a note of caution in regards to the yr ahead.

“Based on current macroeconomic indicators and our proprietary bank card data, we consider the patron will proceed to be pressured in 2023, particularly in the primary half, and have planned inventory mix and depth of initial buys accordingly,” Gennette said Friday.

Macy’s fourth-quarter net sales are actually expected to be on the low end to midpoint of the previously issued range of $8.16 billion to $8.4 billion. Adjusted diluted earnings per share are expected to be within the previously issued range of $1.47 to $1.67.

Macy’s fourth quarter ends Jan. 28. The corporate expects to report full results for the fourth quarter and monetary yr 2022 in early March. The guidance for the period was provided throughout the company’s Nov. 17, 2022, earnings call on the third quarter.

On a percentage basis, total end-of-quarter inventories are heading in the right direction to be barely below last yr and down midteens relative to 2019.

Macy’s forecast, issued after the stock market closed, pulled the stock price down 4.25 percent, or $0.94 to $21.19.

“Our teams executed well during a competitive holiday season. In an environment when discretionary spending was under pressure, we operated with precision and agility,” said Gennette. “Black Friday/Cyber Monday sales were according to our expectations, while the week leading as much as and following Christmas were ahead.

“Nonetheless, the lulls of the nonpeak holiday weeks were deeper than anticipated. Overall, our occasion apparel and gift-giving business were strengths and inventory composition and price points aligned with customers’ needs. Throughout the season, Bloomingdale’s and Bluemercury continued to outperform. Across nameplates, we stayed near our customer, utilizing data and analytics tools to reply to shifts in demand. This has contributed to scrub inventories and an expected gross margin rate roughly according to previously issued fourth-quarter guidance.” 

Gennette added that the corporate takes “a balanced approach to merchandise receipts and stays committed to offering fashion and value across nameplates and channels, with the capability to regulate in-season buys and chase into areas of strength. As we glance further ahead, the efficiencies we’ve built into our business coupled with our financial health, data-driven decision processes, and agile ways of working allow us to operate from a position of strength while continuing to take a position in our future.”

Gennette, together with Adrian Mitchell, chief financial officer, and Nata Dvir, Macy’s chief merchandising officer, might be participating Monday within the 2023 ICR Conference in Orlando, Florida. The corporate is scheduled to carry meetings starting Sunday.