Macy’s Inc., seeing waning consumer demand, reported first-quarter top- and bottom-line declines and has revised its guidance for the yr downward.

Net income for the quarter ended April 29 was $155 million, or $0.56 per diluted share, in comparison with $286 million, or $0.98 per share, within the year-ago period.

Earnings before interest, taxes, depreciation and amortization got here to $466 million versus $684 million within the year-ago quarter.

Net sales of $5 billion were down 7 percent in comparison with $5.35 billion in the primary quarter of 2022. Comparable sales were down 7.2 percent.

Brick-and-mortar sales decreased 6 percent versus the primary quarter of 2022, and digital sales decreased 8 percent versus the primary quarter of 2022. 

In pre-market trading Thursday, Macy’s stock was down 9.35 percent, or $1.27, to $12.32.

“Through the first quarter, we delivered a solid beat on our gross margin rate and bottom-line expectations enabled by our disciplined teams, strength of our inventory management and operational efficiencies,” Jeff Gennette, chairman and chief executive officer of Macy’s Inc., said in a press release Thursday. “We planned the yr assuming that the economic health of the patron could be challenged, but starting in late March, demand trends weakened further in our discretionary categories.

“We now have hurried to take the suitable actions to fulfill current consumer demand and manage our expenses,” Gennette added. “Our revised guidance reflects incremental clearance markdowns to deal with excess spring seasonal merchandise within the second quarter, together with adjustments to the category composition and inventory levels within the back half of the yr.”

By division, Macy’s comparable sales were down 7.9 percent. The bestselling categories last quarter were beauty, particularly fragrances, men’s tailored clothing, women’s profession sportswear and off-price with Backstage.

Bloomingdale’s comparable sales were down 4.3 percent. Bestselling categories last quarter were beauty, particularly fragrances, women’s and men’s contemporary apparel, housewares and the outlet locations.

At Bluemercury, comparable sales were up 4.3 percent. Bestselling categories were clinical and medical skincare and color in the course of the quarter. 

Merchandise inventories were down 7 percent year-over-year and down 16 percent in comparison with 2019, “reflecting ongoing disciplined inventory management.”

The corporate is taking pricing actions within the second quarter to sell through remaining first-quarter seasonal merchandise inventories and May receipts on the Macy’s nameplate and anticipates end of second-quarter merchandise inventories to be down low- to mid-single digits in comparison with last yr. 

Macy’s Inc.’s gross margin rate for the quarter was 40 percent, up from 39.6 percent in the primary quarter of 2022. Versus the primary quarter of 2019, gross margin rate increased 180 basis points from 38.2 percent.

Macy’s is now forecasting net sales of $22.8 billion to $23.2 billion for all of 2023. Previously, the retailer projected net sales of $23.7 billion to $24.2 billion.

Comparable sales are seen down 7.5 to six percent this yr. Previously, comparable sales were projected down 4 to 2 percent.

Adjusted earnings per share are actually seen at $2.70 to $3.20, versus the previous forecast of $3.67 to $4.11.