Macy’s Inc. issued a downbeat outlook for sales in the current quarter, a sign that executives might have been too optimistic about their expectations for a solid holiday shopping season.

America’s largest department-store operator said it’s forecasting net sales in the current quarter to be at or slightly below the $7.8 billion to $8 billion executives were expecting as of last month. Analysts surveyed by Bloomberg are anticipating $7.8 billion.

Shares of Macy’s fell 5.8% in Monday trading in New York. The company’s shares fell 16% last year, compared with a 12% gain for the S&P Midcap 400 Index.

A number of consumer companies released earnings and provided updated guidance Monday morning ahead of the ICR conference taking place this week in Orlando, Florida. Macy’s was a laggard among the group, and illustrated how difficult it remains to break through in today’s retail environment where shoppers remain pinched by stubbornly high prices.

Abercrombie & Fitch Co. announced better-than-expected holiday sales, but its share price tumbled 16% in Monday trading in New York after its sales growth target fell short of some analysts’ expectations.

Abercrombie’s boost to its net sales growth target is “perhaps not as large as some had thought,” said Dylan Carden of William Blair. “The risk you hold from here is the 2025 guide,” expected in March, with the likely sales growth deceleration in the A&F brand posing a risk to margins, he said.

Other retailers saw bright spots. Lululemon raised its guidance and said it expects fourth-quarter sales to surpass market expectations. Shake Shack also reported fourth-quarter sales that surpassed Wall Street’s expectations. American Eagle Outfitters, Inc. said sales have been stronger than expected in the current quarter while while Urban Outfitters Inc. reported sales rose 10% in the two months ended December 31.

On Friday, Nordstrom Inc. boosted its forecast for annual comparable sales.

Cautious Shoppers 

Macy’s maintained its outlook for earnings per share, according to a statement published Monday morning.

Macy’s executives said in December they were expecting a cautious but engaged shopper during the holiday season and raised their forecast for sales — an outlook that looks like it will ultimately prove too rosy. On Monday, the company said Macy’s comparable sales were roughly flat in the nine weeks ended Jan. 4 compared to the year before.

Since he took over nearly a year ago, Chief Executive Tony Spring has focused on closing down poorly-performing Macy’s stores and investing more resources in the 50 stores that he and his team think have greater potential. Those stores, as well as higher-end Bloomingdale’s and beauty chain Bluemercury, continued to report positive comparable sales in the quarter through Jan. 4, the company said in the statement.

Macy’s said it’s expanding that initiative to an additional 75 Macy’s locations, which Spring said in the statement reflects an “ongoing positive response” to the 50-store strategy. That includes hiring more staff and a focus on selling fewer-but-better items that are particularly popular with department-store shoppers, such as shoes and handbags, among other measures.

Accounting snafu

Macy’s is trying to move past an accounting snafu. 

In December, Macy’s cut its profit outlook significantly as a result of an investigation into the financial impact of an employee who hid expenses over several years. The company said at the time that most of the impact of the hidden delivery expenses would be recorded in the fourth quarter. Executives have said that the ex-employee acted alone and didn’t hide the expenses for personal gain.

Executives will present Tuesday at 8am at the ICR conference. The company expects fourth-quarter results in early March.