LINKEDINCOMMENTMORE

Macy’s Inc., the largest department-store chain, forecast annual earnings that fell short of analysts’ estimates after posting disappointing sales growth during the holiday season.

Earnings will be $4.70 to $4.80 a share this year, the Cincinnati-based company said in a statement on Tuesday. Analysts had estimated $4.84 on average, according to data compiled by Bloomberg. Comparable-store sales increased 2 percent in the fourth quarter, trailing the company’s earlier forecast of as much as 3 percent growth.

Macy’s Chief Executive Officer Terry Lundgren is relying less on deep discounts, a strategy that helps profit margins but makes it harder to get customers in the door. He’s also working to broaden the chain’s customer base with new brands, including Bluemercury, a beauty chain that will open boutiques in some Macy’s stores.

Macy’s said earlier this month that it would pay $210 million in cash for Bluemercury and plans to expand the chain of luxury spas. Bluemercury, based in Washington, D.C., has 60 stores with 500 associates.

Read or Share this story: http://detne.ws/1Ergk1I