Macy's warned that its margins will come under further pressure in the current quarter and for the full fiscal year.
The department store chain cited a variety of factors, including an inventory overhang from last year, aggressive promotions for beauty products, home decor pricing, and watch sales.
The company also outlined a new promotional strategy to move away from sales promotions and focus messaging around tentpole campaigns tied to the four seasons. But attention seemed to focus more on the question of margins.
Below are some key data points about Macy's performance drawn from the eMarketer Retail & Ecommerce database:
Margins: After falling for several years, Macy's gross margin rose 32 basis points in fiscal 2016.