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Last Updated: Wednesday, 15 August 2007, 14:25 GMT 15:25 UK
US slowdown hits Macy's profits
Macy's department store in New York City
Macy's is among the most iconic department store chains in the US
Iconic US department store chain Macy's has become the latest retailer to warn of flagging demand from customers.

It said profits in the three months to 4 August fell by 77% on the same period a year ago, to $74m (37.1m), in "a more challenging economic environment".

Macy's results came a day after retail giant Wal-Mart and DIY firm Home Depot gave disappointing profit forecasts which sent their shares down.

The firm has more than 850 stores in 45 states across the US.

Macy's, formerly known as Federated Department Stores, saw sales slip by about 2% to $5.9bn in the period.

Chief executive Terry Lundgren said the firm was optimistic that the business "can and will improve" in the second half of the financial year.

On Tuesday, Wal-Mart Stores said annual profit would fall below expectations as consumers reined in spending.

For its part, Home Depot said that weakness in the housing market had caused quarterly profit to slide.


SEE ALSO
NY store drops 'faux fur' jackets
23 Dec 06 |  Americas
Macy's shake-up puts jobs at risk
22 Sep 05 |  Business
Macy's owner buys rival for $11bn
28 Feb 05 |  Business
The death of the department store
01 Mar 05 |  Business

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