CINCINNATI — Macy’s is feeling a big chill from international tourists because their money isn’t going as far as it used to.
The strong dollar has crimped spending by overseas visitors at Macy’s stores in big cities such as New York, Las Vegas and Chicago. That contributed to a 13 percent decline in profit in the first quarter, the company said.
The company said bad winter weather and a slowdown at West Coast ports also hurt sales.
Shares of Macy’s fell nearly 2.5 percent to close at $63.73 Wednesday even as the company raised its quarterly dividend.
Sales from international tourists account for 5 percent of Macy’s business and fell by a double-digit percentage in the latest quarter, Macy’s chief financial officer Karen Hoguet said on a conference call with analysts. The stronger U.S. dollar made handbags, clothing and other goods more expensive for tourists who were exchanging foreign currency.
“Unfortunately, this impact will likely stay with us at least through the summer vacation period,” Hoguet said.
Macy’s huge flagship stores, such as the iconic store on New York’s 34th Street and the former Marshall Field’s flagship on Chicago’s State Street, attract many tourists. Macy’s also operates luxury seller Bloomingdale’s, which draws wealthy out-of-towners.
The company, which has been a standout in retailing throughout the economic recovery, is the first of the major retailers to report first-quarter results.
