Shares Of Macy's Tumble On Weak 2008 Outlook

Cincinnati, Ohio (AHN) - Shares of Macy's Inc. (NYSE: M) plunged to a 13-year low on Friday, following report that the company has slashed its 2008 earnings outlook for this year as consumer spending drop.

Shares of the retail giant also hit a 52-week low at $9.23 from the previous low of $11.28. The stock has traded as high as $35.48 in the last 12 months.

The company said in a statement that it now expects earnings per share to be between $1.30 to $1.50 for fiscal 2008, excluding one-time division consolidation costs and impairment charges, compared to its previous forecast for earnings of $1.70 to $1.85 per share.

Macy's trimmed its profit forecast following a report on Thursday that showed the department stores, luxury chains and specialty retailers had a grim September month due to slumping credit crisis.

Sales sluggishly increased by 1 percent last month compared to the sales reported a year ago, according to the International Council of Shopping Centers' tally of 36 chains.

By the end of September, the company had approximately $740 million in cash and cash equivalents.

Macy's also reported that its same-store sales, or sales at stores opened at least a year, have declined 5.8 percent in the third quarter so far. The company's same-store sales year to date have dropped by 3.2 percent.

"We are continuing to manage our business well in this tough economic environment, while simultaneously offering customers exciting fashion product and great value," Terry J. Lundgren, chairman, president and chief executive officer of Macy's, Inc., said in a statement on Friday.

"We expect this will result in sales performance that continues to outpace key competitors, as we have done throughout the year-to-date period."

At 12:52pm ET, the company was trading down by $1.13 or 9.86 percent at $10.33 in New York Stock Exchange composite trading.