Department store stocks fall on the heels of Macy's dismal earnings

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Shares of Nordstrom, Kohl's, and Dilliard's fell in premarket trading on Wednesday after Macy's lowered its profit outlook in an earnings miss that was indicative of challenges within the broader department store and retail sector.

In its earnings report, Macy's said excess inventory during the spring season forced the company to cut prices in order to move merchandise, which weighed on profits. The company is now expecting to earn between $2.85 and $3.05 a share this fiscal year, down from a range of $3.05 to $3.25., as annual sales at U.S department stores fell 20% from 2017 to 2018 and are on pace to drop even further this year, according to the U.S. Census Bureau.

More and more shoppers are steering clear of shopping malls and instead turning to online clothing platforms like

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