Poor store sales have caused Macy's to lower its earnings forecast to $1.30 to $1.50 per share for fiscal year 2008. In addition, officials at Macy's expect poor sales to continue past 2009. The recession that has made consumers so reluctant to spend has showed no signs of lifting in 2009. In addition, the company's revenues have been decreasing even before the recession began. Current economic conditions won't make the company's performance any better.
Moody’s Investors Service (MCO), cut Macy’s Inc.’s (M) credit rating to junk status yesterday (Wednesday), saying the department store chain will likely remain under pressure amid weak consumer spending, Reuters reported. The ratings agency cut Macy’s senior unsecured rating by two notches to Ba2, the second highest junk rating. The outlook is stable, meaning another rating change is not expected over the next 12 to 18 months.