Macy’s Weak Forecast Just Killed These Retail Brand Stocks

Without new strategies, retail stocks may need to drop more to again become attractive to investors. Investors heavily discounted U.S. retailers on Wednesday after a series of disappointments in the sector, including a weak forecast from Macy’s. Macy’s stock dropped 15.2% to $31.38, the lowest since December 2011, after the company posted a much bigger-than-expected drop in quarterly sales and slashed its full-year forecast. The stock helped lead a 1.9% decline in the S&P 500 retail index. The selling quickly spread in the sector as the outlook for brick-and-mortar retailers weakened. Shares of Fossil Group fell 29.1%, also following disappointing results and a worse-than-expected forecast. Read more at Fortune.