May 11 (Reuters) - Department store operator Macy’s Inc reported a 39 percent drop in quarterly profit, hurt by a decline in sales and as higher inventory weighed on margins.
The company’s shares dropped 7 percent in premarket trading on Thursday.
Net income attributable to Macy’s shareholders fell to $71 million, or 23 cents per share, in the first quarter ended April 29, from $116 million, or 37 cents per share, a year earlier.
Sales at stores open at least a year, including sales in departments licensed to third parties, fell 4.6 percent, steeper than the 3.5 percent drop expected by analysts polled by research firm Consensus Metrix. (Reporting by Sruthi Ramakrishnan in Bengaluru; Editing by Savio D‘Souza)