According to TCA Financial, stocks in iconic US retailer, Macy’s have plunged by more than 10% after it revealed a 40% plunge in income in the first three months of the year. The company revealed first quarter earnings that beat Wall Street’s expectations, posting earnings of 40 cents a share on revenues of $5.77 billion versus estimates for 36 cents a share of revenue of $5.93 billion.

Though the numbers beat expectations, they were down on the same period last year when revenue came in at $6.23 billon but it was the lowering of guidance for the fiscal year that saw investors sell the stock heavily in intraday trading. Macy’s said it expects to earn between $3.15 and $3.40 per share compared with earlier guidance of $3.80 to $3.90 a share.

The news comes after the company revealed a slew of job cuts as part of a restructuring it hoped would help trim costs but, since then, lower tourist spending caused by a stronger US dollar have impacted on sales.

“This is very much a strong dollar story but there is also the competition from online retailers like Amazon and others,” said Colin Phipps, chief economist at Shenzhen, China-based broker dealer, TCA Financial.

Macy's Chairman and CEO Terry Lundgren said that the company was not counting on consumers to spend more and, consequently, they would work harder to give customers more reasons to buy from Macy’s.

TCA Financial says there is little reason to expect that Macy’s fortunes will turn around during the current year. “We expect the US jobs recovery to slow further in the coming months,” concluded Phipps.

About TCA Financial:
TCA Financial is resolutely committed to helping our clients accumulate and preserve wealth by actively managing the deployment of their investment capital within the global financial markets. We have a proven, checkable track record of being able to accomplish this regardless of the prevailing macro-economic conditions because of our expertise and professionalism and because we know that markets, just like people, are all connected to varying degrees at varying times.