Macy's shares tank 13% as deep discounting leads to big earnings miss, cut forecast

second-quarter earnings fell way below analysts' expectations, as heavy markdowns used during the spring season to clear unsold merchandise weighed on profits.

"We took markdowns to clear the excess Spring inventory and are entering the Fall season with the right inventory to meet anticipated customer demand," he added. Net sales fell to $5.546 billion from $5.572 billion a year ago, slightly beating expectations for $5.542 billion.

Deep discounting can lead to lower profits. “Intro to Business 101”

Maybe if they cut prices retail prices they would see an increase in total revenue thus increasing share prices

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