In the third quarter, the brand showed it was hurting — same store sales fell 3.9%, and the brand is anticipating a dip in the fourth quarter, as well.
On the call, CFO Karen Hoguet outlined four reasons the brand is showing wear and tear: people aren't buying fall apparel because the unseasonably warm weather, tourist spending is down, growth at the namesake stores is slowing, and the demand for its largest brand.
To help spike spending, Hoguet said the brand would increase sales. But sales — while appealing to consumers — can hurt retailers. "That will be good for consumers, but it will obviously put pressure on our own margins," CEO Terry Lundgren said on an earnings call.
Worse, Macy's has delved into serious discounting with its Backstage off-shoot, and it could hurt the department store.