US slowdown hits Macy's profits

by ryan | August 15, 2007 at 09:20 am

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More bad news for the US economy. The iconic Macy's reported falling profits. The announcement comes only a day after Wal-Mart, the world's largest retailer, reported similar quarterly results. The markets are bound to react to this with further sell offs and continued losses.

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.